NYSE$HRB

H&R Block Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

H&R Block's financial performance was impacted by a delayed tax season start, resulting in a revenue decline, though partially offset by growth in small business services and Emerald Card transactions.

H&R Block reported a 41% decline in revenue for the fiscal third quarter, primarily due to a delayed start to the U.S. tax season. This decline impacted GAAP and adjusted non-GAAP loss per share, though partially offset by a decrease in operating expenses. The company reiterated its revenue growth and earnings outlook for the fiscal year and is focused on executing its Block Horizons strategy.

  • Revenue declined by 41% to $308 million due to a delayed tax season start.
  • GAAP loss per share increased to $(1.27) from $(0.66) year-over-year.
  • Adjusted non-GAAP loss per share increased to $(1.17) from $(0.59) year-over-year.
  • The company reiterated its full-year financial outlook, expecting strong free cash flow and capital return to shareholders.

Headline financials

Total Revenue

$308M

Previous: $519M-40.6%
EPS (adj)

-$1.17

Previous: -$0.59-98.3%
Capital Expenditures

-$48M

Previous: -$66.5M+27.8%
Free Cash Flow

-$281M

Previous: -$196M-43.2%
Net Income

-$233M

Previous: -$130M-79.7%
Operating Income

-$593M

Previous: -$693M+14.4%
Gross Profit

-$72M

Previous: $56.7M-227.1%
Cash & Equivalents

$280M

Previous: $192M+45.7%
Total Assets

$3.17B

Previous: $3.45B-8.2%
Stock-Based Comp

-$1.58M

Previous: $6.61M-123.9%

Revenue & EPS history

H&R Block · Revenue · Quarterly

$308M

Q3 2021-40.6%vs Q3 2020
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

H&R Block · $301M total across 10 segments · Q3 2021

  • U.S. Assisted Tax Preparation
    $154M-45.6%
  • Interest and fee income on Emerald Advance®
    $27.6M-15.7%
  • U.S. Royalties
    $23.9M-46.8%
  • Emerald Card® and Spruce℠
    $22M+31.8%
  • U.S. DIY Tax Preparation
    $21.7M-36.4%
  • Peace of Mind® Extended Service Plan
    $16.1M-5.0%
  • International
    $15.7M+32.8%
  • Wave
    $14.8M+32.0%
  • Tax Identity Shield®
    $4.93M-39.5%
  • Refund Transfers
    $7K-100.0%

Forward guidance

H&R Block is on target to deliver its financial outlook for the year, which is expected to drive strong free cash flow and significant return of capital to its shareholders through dividends and share repurchases.

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 Q3 2021

Historical avgQ3 2021

+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

Earnings price reactions
QuarterReport dateReaction (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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