H&R Block, Inc. (NYSE:HRB) reported poor third-quarter fiscal 2023 earnings and revenue that fell short of the Consensus Estimate.

The company’s adjusted earnings per share for the third quarter of fiscal 2023 of $4.20 (excluding 8 cents for non-recurring events) fell short of the Consensus Estimate of $4.51. Earnings increased 2.2% year on year, attributable primarily to fewer shares outstanding as a result of share repurchases.

Revenues of $2.1 billion also fell slightly short of the consensus projection but climbed 2% year on year. A larger net average charge in the Assisted category boosted the bottom line.

Total operational expenses grew by 4.5% to $1.2 billion, owing primarily to increasing field pay and the timing of advertising.

Other Quarterly Figures

H&R Block ended the quarter with $909.1 million in cash and cash equivalents, up from $264.5 million at the conclusion of the previous quarter. Long-term debt and credit line borrowings totaled $1.48 billion, down from $2.1 billion in the previous quarter.

H&R Block spent $1.28 billion on operating expenses and $15.2 million on capital expenditures. HRB paid out $44.6 million in dividends during the quarter under review.

H&R Block predicts revenues in the $3.440-$3.465 billion range in 2023 (previous estimate: $3.535-3.585 billion). The recommended range’s midpoint ($3.45 billion) is less than the current Consensus Estimate of $3.55 billion.

Adjusted EPS is expected to range between $3.65 and $3.80 (previous estimate: $3.7 to $3.95). The recommended range’s midpoint ($3.725) is slightly lower than the current Consensus Estimate of $3.86.

EBITDA is expected to range between $895 million and $910 million (previous estimate: $915 million to $950 million). The effective tax rate is still estimated to be in the range of 22%.

Earnings of Some Service Providers

Omnicom (NYSE:OMC) reported better-than-expected first-quarter 2023 earnings.

OMC’s earnings per share of $1.56 outperformed the Consensus expectation by 13% and our expectation by 11.4%. Year on year, EPS climbed by 12.2%. Total revenue of $3.4 billion was 2.3% higher than the consensus estimate and 1.4% higher than our estimate. Year on year, the top line climbed by 1%.

Equifax (NYSE:EFX) also posted better-than-expected results for the first quarter of 2023.

EFX’s adjusted earnings per share of $1.43 topped the consensus estimate by 4.4%. However, the bottom line fell 35.6% from the previous year. Total revenue of $1.3 billion was 1.5% more than the consensus projection. The top line fell 4.5% year over year.

ManpowerGroup (NYSE:MAN) posted first-quarter 2023 earnings that were weaker than expected.

MAN’s adjusted earnings per share of $1.61 trailed the consensus mark by 0.6% but were in line with our forecast. Revenues of $4.8 billion fell short of the consensus and our projection by 1.3%. The top line fell 7.6% year on year.

Featured Image: Pexels @ Nataliya Vaitkevich

Please See Disclaimer