H&R Block stock broke out Friday morning after the tax preparation company posted better-than-expected earnings and hiked its dividend.
H&R Block reported a 7.8% decline in Q4 earnings to $1.89 per share adjusted, compared to FactSet views of $1.74 per share. Revenue rose 3% to $1.06 billion, also clearing forecasts for $1.03 billion in sales.
H&R Block announced a 17% increase to its quarterly dividend to $0.375 per share, which is payable on Oct. 3 to shareholders of record as of Sept. 5. The company also revealed a new $1.5 billion share repurchase authorization, which replaces its prior buyback plan.
The company reported that cash, equivalents and restricted cash rose about 5.9% to $1.075 billion during the 2024 fiscal year
H&R Block guided 2025 revenue to range from $3.69 billion to $3.75 billion, which was in-line for FactSet views of $3.7 billion. The tax prepper sees full-year adjusted earnings ranging from $5.15 to $5.35 per share, just ahead of analyst expectations for $5.14 per share. H&R Block reported 2024 earnings of $4.41 per share adjusted on $3.61 billion in revenue.
H&R Block Stock Soars Early
HRB stock leapt about 12% Friday to close at a record high and clear a 58.63 entry for a three-weeks tight pattern. The spike above that entry presents a possible breakaway gap buying opportunity.
The three-weeks tight pattern formed as a follow-on opportunity on top of a flat base. Shares broke out of the base at the end of June and have traded tightly above their 50-day line in the weeks since.
H&R Block stock rallied 33% in 2024.
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