NYSE$HRB
H&R Block Inc · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
H&R Block's Q2 2023 financial performance reflected revenue growth and continued investment in share repurchases, while also reaffirming its full-year outlook.
H&R Block reported a 5% increase in revenue for the second quarter of fiscal year 2023, driven by a strong ending to the 2022 tax season. The company repurchased $130.4 million of shares during the quarter and reiterated its full-year outlook for 2023, which includes topline growth, EBITDA outperforming revenue growth, and EPS growing even faster.
- Revenue increased by 5% due to strong tax season performance.
- Operating expenses rose by 3%, influenced by higher wages and bad debt expense.
- The company repurchased $130.4 million worth of shares, representing 2% of shares outstanding.
- Fiscal year 2023 outlook reaffirmed, projecting revenue growth and improved profitability.
Headline financials
Revenue & EPS history
H&R Block · Revenue · Quarterly
$166M
Revenue by segment
H&R Block · $158M total across 10 segments · Q2 2023
- U.S. Assisted Tax Preparation$41.2M+33.6%26.1%
- International$28M+0.5%17.8%
- Wave$21.9M+12.5%13.9%
- Peace of Mind® Extended Service Plan$17.3M+0.0%11.0%
- Interest and fee income on Emerald Advance®$12.9M+3.9%8.2%
- Emerald Card® and Spruce℠$12.5M-49.7%7.9%
- U.S. DIY Tax Preparation$12.2M+31.9%7.7%
- Tax Identity Shield®$5.35M+2.9%3.4%
- U.S. Royalties$4.95M+45.3%3.1%
- Refund Transfers$1.54M+98.5%1.0%
Forward guidance
The Company continues to expect: •Revenue to be in the range of $3.535 to $3.585 billion •EBITDA4 to be in the range of $915 to $950 million •Effective tax rate to be approximately 22% •Adjusted diluted earnings per share4 to be in the range of $3.70 to $3.95 •Double-digit adjusted diluted earnings per share4 growth annually through 2025
Tailwinds
- Revenue to be in the range of $3.535 to $3.585 billion
- EBITDA to be in the range of $915 to $950 million
- Effective tax rate to be approximately 22%
- Adjusted diluted earnings per share to be in the range of $3.70 to $3.95
- Double-digit adjusted diluted earnings per share growth annually through 2025
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q2 2023
+0.2%
Avg return
Earnings day
+2.2%
Avg return
5 days after
+1.6%
Avg return
30 days after
39%
27 / 69 earnings
Positive
+23.5%
Q3 2026
Best reaction
-17.3%
Q4 2018
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q3 2026 | +23.5% | +25.1% | +29.8% | |
| Q2 2026 | -2.9% | -11.9% | -13.3% | |
| Q1 2026 | -3.5% | -10.7% | -18.2% | |
| Q3 2025 | -5.4% | -7.6% | -5.5% | |
| Q2 2025 | -0.1% | -3.4% | +2.0% | |
| Q1 2025 | -5.3% | -4.1% | -8.3% | |
| Q4 2024 | +13.2% | +17.0% | +11.0% | |
| Q3 2024 | +10.3% | +9.3% | +2.8% | |
| Q2 2024 | -1.1% | -0.1% | +2.9% | |
| Q1 2024 | -0.0% | +7.7% | +9.6% | |
| Q4 2023 | +10.3% | +12.1% | +12.1% | |
| Q3 2023 | -2.9% | -0.4% | -1.5% | |
| Q2 2023 | +0.1% | -1.2% | -8.0% | |
| Q1 2023 | -6.4% | -3.4% | +5.6% | |
| Q4 2022 | +13.1% | +12.8% | +12.6% | |
| Q3 2022 | +17.1% | +33.1% | +47.3% | |
| Q2 2022 | +5.1% | +4.8% | +13.7% | |
| Q1 2022 | +5.0% | +9.6% | +2.8% | |
| Q4 2021 | -7.4% | +1.5% | +3.9% | |
| Q3 2021 | +2.4% | +5.2% | +11.9% | |
| Q2 2021 | -7.5% | -10.1% | -10.1% | |
| Q1 2021 | +2.0% | +4.5% | +14.9% | |
| Q4 2020 | -8.0% | -11.3% | -15.7% | |
| Q3 2020 | -9.5% | -4.8% | -45.4% | |
| Q2 2020 | -1.0% | -2.0% | -0.6% | |
| Q1 2020 | -9.4% | -10.0% | -13.3% | |
| Q4 2019 | +4.2% | +6.5% | +4.4% | |
| Q3 2019 | +6.0% | +2.5% | +5.9% | |
| Q2 2019 | -1.7% | +0.9% | -7.5% | |
| Q1 2019 | -1.1% | +1.7% | -2.4% | |
| Q4 2018 | -17.3% | -19.5% | -18.1% | |
| Q3 2018 | +11.4% | +7.3% | +0.2% | |
| Q2 2018 | +4.2% | +4.6% | +1.9% | |
| Q1 2018 | -9.5% | -9.6% | -8.0% | |
| Q4 2017 | +10.2% | +13.2% | +18.2% | |
| Q3 2017 | +14.2% | +13.2% | +12.4% | |
| Q2 2017 | +0.4% | +3.3% | +5.8% | |
| Q1 2017 | -11.8% | -11.8% | -7.7% | |
| Q4 2016 | +15.3% | +13.2% | +12.3% | |
| Q3 2016 | -14.8% | — | — | |
| Q2 2016 | -7.5% | — | — | |
| Q1 2016 | +4.1% | — | — | |
| Q4 2015 | +1.5% | — | — | |
| Q3 2015 | -5.0% | — | — | |
| Q2 2015 | -6.0% | — | — | |
| Q1 2015 | -2.4% | — | — | |
| Q4 2014 | +5.3% | — | — | |
| Q3 2014 | -2.4% | — | — | |
| Q2 2014 | -3.5% | — | — | |
| Q1 2014 | -0.8% | — | — | |
| Q4 2013 | -1.7% | — | — | |
| Q3 2013 | +8.0% | — | — | |
| Q2 2013 | +5.8% | — | — | |
| Q1 2013 | -1.5% | — | — | |
| Q4 2012 | +3.0% | — | — | |
| Q3 2012 | -0.1% | — | — | |
| Q2 2012 | -7.3% | — | — | |
| Q1 2012 | -11.3% | — | — | |
| Q4 2011 | -1.3% | — | — | |
| Q3 2011 | +5.5% | — | — | |
| Q2 2011 | -3.6% | — | — | |
| Q1 2011 | +1.0% | — | — | |
| Q4 2008 | -3.4% | — | — | |
| Q4 2010 | -3.4% | — | — | |
| Q3 2010 | -0.1% | — | — | |
| Q3 2009 | -0.1% | — | — | |
| Q2 2010 | -0.2% | — | — | |
| Q4 2009 | -1.7% | — | — | |
| Q1 2010 | -1.7% | — | — |
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