Tax prep giant H&R Block reported a 10% increase in its quarterly dividend, to 32 cents per share, after a strong finish to the year.
Full-year revenue for the tax prep franchise giant was $3.5 billion (0.3% growth).
In the fourth quarter, Block repurchased $200 million worth of shares at an average price of $30.94.
“We had a good finish to the year and I am pleased that we were able to grow revenue, deliver material EBITDA growth, and adjusted earnings per share that grew 9%,” said president and CEO Jeff Jones.
Among other highlights of Block’s report:
- Total revenue of $3.5 billion increased $9 million, driven by higher U.S. assisted tax prep revenues, partially offset by a decrease in Emerald Card revenues.
- Operating expenses of $2.7 billion increased $5 million, primarily due to higher field wages and partially offset by lower consulting and outsourced services.
- Pretax income of $711 million increased $52 million, primarily due to higher interest income in the current year and lower interest expense on borrowings.
For FY24, Block expects revenue in the range of $3.53 billion to $3.585 billion, EBITDA in the range of $930 million to $965 million and adjusted diluted EPS in the range of $4.10 to $4.30.
Block’s stock rallied after the Kansas City, Missouri-based company released the news.
A big long-term challenge to Block and similar tax prep chains could be the proposed IRS free Direct File program, which, citing “heavy demand,” is slated to begin pilot testing early next season.
David Paul Morris/Bloomberg
