H&R Block to report Q3 results: what analysts expect

what happened

Tax preparation company H&R Block will publish its third-quarter results on Monday after the market closes, StockStory reports. Revenue last quarter reached $1.14 billion, up 3% from a year earlier and ahead of analyst forecasts. Full-year revenue and EBITDA guidance also beat consensus expectations.

The market expects third-quarter revenue to rise 4.5% year on year, slightly below the 5% gain posted in the same quarter last year. Over the past 30 days, analysts have broadly reaffirmed their estimates. The company has also often exceeded Wall Street expectations in the past.

Peers in the segment have already reported. WeightWatchers' revenue fell 11.2%, in line with forecasts, and its shares dropped 6.8%. Frontdoor's revenue rose 6%, topping estimates by 1.1%, and its stock gained 4.6%. Over the past month, sector shares averaged a 4.7% rise, while H&R Block climbed 17.2%. The average analyst price target stands at $51.67 against a share price of $51.63.

why it matters

The report matters to investors in consumer services, since it shows whether growth is holding up in the sector. Peer reactions suggest the market responds sharply to revenue disappointments, so actual growth compared with the 4.5% expectation will be the key benchmark for H&R Block's shares.

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