H&R Block Q1 profit beats estimates, revenue misses

H&R Block on Tuesday reported first-quarter adjusted earnings per share of $2.23, exceeding the $2.16 consensus estimate compiled by Refinitiv. The Kansas City-based tax preparation firm posted revenue of $1.2 billion, down 5% from the year-earlier period and below the $1.25 billion estimate.

Net income for the quarter ended Sept. 30 rose to $332 million from $311 million a year ago, while total operating revenue declined to $1.2 billion from $1.26 billion. The company attributed the revenue shortfall to lower seasonal tax-preparation activity compared with a year earlier, when demand was boosted by pandemic-related filing extensions.

H&R Block maintained its full-year guidance, reaffirming expectations for adjusted earnings per share in the range of $8.85 to $9.25. Chief Executive Officer Jeff Jones said the company remains on track to deliver mid-single-digit revenue growth for the full fiscal year, despite the softer start to the season.

Analysts had projected revenue of $1.25 billion for the quarter, according to Refinitiv data. The company’s shares were little changed in after-hours trading following the release.

H&R Block has historically generated the bulk of its annual revenue during the first and second quarters, which encompass the U.S. tax-filing season. The firm serves roughly 20 million customers annually through its network of company-owned and franchise offices, as well as digital platforms.