H & R Block Inc (NYSE:HRB) stock surges 17.31% (As on August 16, 11:25:54 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the second quarter of FY 24 and issued upbeat guidance for fiscal 2025. In FY 24, Total revenue of $3.6 billion increased by $138.2 million, or 4.0%, primarily due to a higher net average charge and company-owned volumes in the Assisted category combined with greater online paid returns at a higher net average charge in DIY, partially offset by lower Emerald Card® activity in the current year. Total operating expenses of $2.8 billion increased by $81.6 million, or 3.0%, primarily due to higher labor costs and bad debt expense, partially offset by lower consulting and outsourced services. Pretax income of $762.3 million increased by $51.1 million, or 7.2%, primarily due to higher revenues in the current year. Earnings per share from continuing operations of $4.14 increased by $0.58, or 16.3%; adjusted earnings per share from continuing operations of $4.41 increased by $0.59, or 15.4%. In fiscal 2024 the company had made strides across our different products and services that provide value to the clients and help enable their financial confidence

HRB in the fourth quarter of FY 24 has reported the adjusted earnings per share of $1.89, beating the analysts’ estimates for the adjusted earnings per share of $1.71, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 3 percent to $1.06 billion in the fourth quarter of FY 24, beating the analysts’ estimates for revenue by 2.58%.

For fiscal 2025, H&R Block forecast earnings per share of $5.15 to $5.35, well above the consensus estimate of $4.30. The company expects revenue between $3.69 billion and $3.75 billion, higher than analysts’ projections of $3.575 billion. FY 25 EBITDA is expected to be in the range of $975 million to $1.02 billion.

H&R Block also announced a 17% increase in its quarterly dividend to $0.375 per share. The company has approved a new share repurchase authorization of $1.5 billion, which replaces the prior authorization.In fiscal year 2024, the Company repurchased and retired approximately 8.0 million shares, or 5.5% of shares outstanding, at an aggregate price of $350 million, or $43.66 per share. The quarterly cash dividend is now $0.375 per share, payable on October 3, 2024 to shareholders of record as of September 5, 2024.