On August 15, 2024, H&R Block Inc (HRB, Financial) released its 8-K filing for the fiscal year ended June 30, 2024. H&R Block Inc provides income tax return preparation services, digital do-it-yourself tax solutions, and other services related to income tax preparation to the general public primarily in the United States, Canada, and Australia.
Fiscal 2024 Performance and Challenges
H&R Block Inc reported full-year revenue of $3.6 billion, a 4% increase from the previous year, and earnings per share (EPS) from continuing operations of $4.14, a 16% increase. These results surpassed analyst estimates of $4.01 EPS and $3.575 billion in revenue. The company also announced a 17% increase in its quarterly dividend to $0.375 per share and a new $1.5 billion share repurchase authorization.
Financial Achievements
H&R Block Inc's financial achievements are significant for the personal services industry, where consistent revenue growth and shareholder returns are critical. The company repurchased $350 million worth of shares, representing 5.5% of shares outstanding, at an average price of $43.66 per share. The new $1.5 billion share repurchase authorization and the increased dividend reflect the company's strong financial position and commitment to returning value to shareholders.
Key Financial Metrics
Key details from the financial statements include:
| Metric | 2024 | 2023 |
|---|---|---|
| Revenue | $3.610 billion | $3.472 billion |
| Pretax Income | $762 million | $711 million |
| Net Income | $598 million | $562 million |
| EPS | $4.14 | $3.56 |
| Adjusted EPS | $4.41 | $3.82 |
| EBITDA | $963 million | $915 million |
Commentary and Analysis
In fiscal 2024 we made strides across our different products and services that provide value to our clients and help enable their financial confidence," said Jeff Jones, H&R Block's president and chief executive officer. "We continue to make progress, gain new insight, and translate this client success into value for shareholders, and are well positioned to build on this momentum in fiscal 2025 and beyond."
The company's performance is crucial as it demonstrates resilience and growth in a competitive market. The increase in revenue was primarily due to higher net average charges and company-owned volumes in the Assisted category, combined with greater online paid returns in DIY. However, challenges such as higher labor costs and bad debt expenses were noted, partially offset by lower consulting and outsourced services.
Capital Structure and Future Outlook
H&R Block Inc's capital structure remains robust, with significant share repurchases and a new authorization reflecting confidence in future performance. The company expects revenue for fiscal year 2025 to be in the range of $3.69 to $3.75 billion, with EBITDA between $975 million and $1.02 billion. The effective tax rate is anticipated to be approximately 13%, positively impacted by the closure of various matters under examination.
For more detailed insights and to view the full earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from H&R Block Inc for further details.
