H&R Block's stock pops as earnings, forecast beat Street

H&R Block Inc. (HRB) shares rallied in the extended session Tuesday after the tax-prep company reported earnings and a forecast that topped Wall Street expectations, and hiked its dividend. H&R Block rallied as much as 7% after hours, following a 0.5% gain to close the regular session at $35.35. The company reported fourth-quarter net income of $302.3 million, or $1.96 a share, compared with $222.7 million, or $1.36 a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were $2.05 a share, compared with $1.43 a share in the year-ago period. Revenue declined to $1.03 billion from $1.05 billion in the year-ago quarter. Analysts surveyed by FactSet had forecast $1.88 a share on revenue of $1.01 billion. H&R Block forecast full-year earnings of $4.10 to $4.30 a share on revenue of $3.53 billion to $3.59 billion, while analysts had estimated $3.72 a share on revenue of $3.45 billion for the year. The company also said its board hiked the quarterly dividend -- next payable Oct. 4 to shareholders of record as of Sept. 7 -- by 10% to 32 cents a share.

-Wallace Witkowski

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08-15-23 1626ET

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