NYSE$HRB

H&R Block Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

H&R Block's Q4 performance was impacted by COVID-19 and the extension of the U.S. federal tax filing deadline, resulting in lower revenue and earnings compared to the prior year.

H&R Block reported fiscal year 2020 results, which were negatively impacted by the COVID-19 pandemic and the extension of the U.S. federal tax filing deadline. The company ended the year with $2.7 billion in cash and announced a quarterly dividend of $0.26 per share. An update on full tax season results will be included in the fiscal 2021 first quarter earnings call.

  • Total revenues decreased due to lower U.S. tax return volumes, partially offset by the addition of Wave.
  • COVID-19 pandemic impacted Wave's client volumes and revenues, leading to a goodwill impairment of $106.0 million.
  • Total operating expenses increased primarily due to the impairment of Wave's goodwill, Wave's operating expenses, legal fees, and planned investments in technology.
  • The company announced a quarterly cash dividend of $0.26 per share.

Headline financials

Total Revenue

$1.81B

Previous: $2.33B-22.4%
EPS (adj)

$3.01

Previous: $4.32-30.3%
Capital Expenditures

$15.2M

Previous: $15.5M-2.1%
Free Cash Flow

$1.56B

Previous: $1.94B-19.4%
Net Income

$460M

Previous: $878M-47.6%
Operating Income

$642M

No prior period
Gross Profit

$1.04B

Previous: $1.47B-29.1%
Cash & Equivalents

$2.66B

Previous: $1.57B+69.3%
Total Assets

$5.11B

Previous: $3.3B+54.9%
Stock-Based Comp

$5.35M

Previous: $5.76M-7.2%

Revenue & EPS history

H&R Block · Revenue · Quarterly

$1.81B

Q4 2020-22.4%vs Q4 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

H&R Block · $1.8B total across 10 segments · Q4 2020

  • U.S. Assisted Tax Preparation
    $1.18B-23.2%
  • U.S. DIY Tax Preparation
    $167M-25.0%
  • U.S. Royalties
    $134M-27.9%
  • Refund Transfers
    $102M-15.5%
  • International
    $82.8M-33.0%
  • Emerald Card® and Spruce℠
    $53.6M-10.0%
  • Peace of Mind® Extended Service Plan
    $29.7M-2.9%
  • Interest and fee income on Emerald Advance®
    $27.1M+2.5%
  • Tax Identity Shield®
    $14.5M-19.6%
  • Wave
    $11M

Forward guidance

H&R Block did not provide forward guidance in this earnings report. The focus is on executing during the first quarter and navigating the difficult time caused by the pandemic.

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 Q4 2020

Historical avgQ4 2020

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro