H&R Block posts Q2 earnings beat on strong end to 2022 tax season

Khaosai Wongnatthakan/iStock via Getty Images

• Tax preparation firm H&R Block (NYSE:HRB) on Tuesday reported better-than-expected Q2 results, owing to a strong end to the 2022 tax season.
• Q2 adj. EPS was -$1.37 vs. -$1.02 in Q2 2022 as a result of lower income tax benefits and fewer outstanding shares.
• Revenue increased 4.8% Y/Y to $166.4M, driven by volumes and net average charge, partially offset by lower Emerald Card revenue.
• Emerald Card revenue dropped 49.7% due to higher card activity a year ago as a result of the IRS loading Child Tax Credits monthly to Emerald Cards.
• H&R (HRB) reiterated its FY23 outlook for the second straight quarter. It expects double-digit adj. EPS growth annually through 2025.
• H&R (HRB) repurchased and retired 2% of its outstanding shares for $130.4M. It has ~$900M remaining in its $1.25B authorization available through FY25.
• Investors appear to be profit-taking as the stock slipped 1.8% after hours on Tuesday. It gained ~13% YTD and ~64% in the last year.
• Earlier, lawmakers sought answers from H&R (HRB) on data sharing with tech giants.