H&R Block reported its fiscal fourth quarter earnings that surpassed analyst expectations. The tax preparation company also announced a raise in its dividend, and expressed its plans to acquire Canadian firm Wave Financial.
The company’s first-quarter earnings came in at $4.32 a share, compared to analysts’ estimates of $4.13 a share (based on FactSet poll). Revenue of $2.33 billion was higher than the year-ago quarter’s $2.39 billion.
H&R Block is hiking its quarterly dividend by 4% to 26 cents a share, or $1.04 annually.
The company also revealed that it will acquire Toronto-based Wave Financial, subject to regulatory approval. H&R apparently expects the acquisition to bolster the company’s small business market, thanks to Wave's accounting, invoicing, payroll, and payments software solutions specialized to cater to small businesses. The acquisition will be an all-cash $405 million deal.
HRB moved below its 50-day moving average on April 09, 2024 date and that indicates a change from an upward trend to a downward trend. In of 42 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for HRB turned negative on April 02, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
The 10-day moving average for HRB crossed bearishly below the 50-day moving average on April 10, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HRB declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 56 cases where HRB's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on April 17, 2024. You may want to consider a long position or call options on HRB as a result. In of 87 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where HRB advanced for three days, in of 333 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 279 cases where HRB Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. HRB’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: HRB's P/B Ratio (189.036) is very high in comparison to the industry average of (12.408). P/E Ratio (13.394) is within average values for comparable stocks, (63.349). Projected Growth (PEG Ratio) (0.822) is also within normal values, averaging (1.802). Dividend Yield (0.026) settles around the average of (0.315) among similar stocks. P/S Ratio (2.088) is also within normal values, averaging (26.854).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of tax, mortgage and financial services
Industry OtherConsumerServices