Why H&R Block Shares Are Surging Today

Author: Vaishali Prayag | August 16, 2024 03:13pm

H&R Block, Inc. (NYSE:HRB) shares are trading higher today, driven by the company’s better-than-expected fourth-quarter financial results and strong guidance. The stock also got a boost from the company’s quarterly dividend increase and $1.5 billion share repurchase authorization. Here’s you need to know.

Why It's Moving: H&R Block reported forth-quarter revenue of $1.063 billion, beating estimates of $1.028 billion and EPS of $1.89, beating the expected $1.74. The company attributed its performance to increased revenue from higher net average charges and volumes in the Assisted category, along with stronger online paid returns.

Additionally, the company projects full-year revenue in the range of $3.69 billion to $3.75 billion, above consensus expectations of $3.575 billion, with adjusted earnings per share expected between $5.15 and $5.35, significantly higher than the estimated $4.30.

What Else: H&R Block's board approved a new $1.5 billion share repurchase program and increased the quarterly dividend by 17%, marking the seventh consecutive increase in seven years. The new dividend of $0.375 per share will be payable on October 3rd.

HRB Price Action: H&R Block’s stock has surged by 12.2%, trading at $64.48 per share as of the latest session according to Benzinga Pro.

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Posted In: HRB