Tax prep giant H&R Block
Full-year revenue for the tax prep franchise giant was $3.5 billion (0.3% growth).
In the fourth quarter, Block repurchased $200 million worth of shares at an average price of $30.94.
"We had a good finish to the year and I am pleased that we were able to grow revenue, deliver material EBITDA growth, and adjusted earnings per share that grew 9%," said president and CEO Jeff Jones.
Among other highlights of Block's report:
- Total revenue of $3.5 billion increased $9 million, driven by higher U.S. assisted tax prep revenues, partially offset by a decrease in Emerald Card revenues.
- Operating expenses of $2.7 billion increased $5 million, primarily due to higher field wages and partially offset by lower consulting and outsourced services.
- Pretax income of $711 million increased $52 million, primarily due to higher interest income in the current year and lower interest expense on borrowings.
For FY24, Block expects revenue in the range of $3.53 billion to $3.585 billion, EBITDA in the range of $930 million to $965 million and adjusted diluted EPS in the range of $4.10 to $4.30.
Block's stock rallied after the Kansas City, Missouri-based company released the news.
A big long-term challenge to Block and similar tax prep chains could be the proposed IRS free Direct File program, which, citing "heavy demand," is slated to begin
