Benzinga | Jun 14, 2021 10:34AM EDT

Earnings Preview for H&R Block

On Tuesday, June 15, H&R Block (NYSE:HRB) will release its latest earnings report. Decipher the announcement with Benzinga's help.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Based on H&R Block management projections, analysts predict EPS of $5.13 on revenue of $2.35 billion. H&R Block earnings in the same period a year ago was $3.01 per share. Quarterly sales came in at $1.81 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to report earnings in line when it publishes results Tuesday, quarterly profit would be up 70.43%. Sales would be up 29.91% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past: Quarter Q3 2021 Q2 2020 Q1 2020 Q4 2020EPS Estimate -1.29 -0.94 0.50 2.61EPS Actual -1.17 -1.09 0.55 3.01Revenue Estimate 373.45 M 163.68 M 617.03 M 1.74 BRevenue Actual 308.23 M 176.55 M 601.03 M 1.81 B

Stock Performance

For a full 12 months, the return has risen by 43.7%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. H&R Block is scheduled to hold the call at 16:30:00 ET and can be accessed here.