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.