H & R Block Inc (NYSE: HRB) stock fell over 2.6% on 10th December, 2020 (As of 1:42 pm GMT-5 ; Source: Google finance) leading to a fall of over 11.3% in the last one week. The company posted mixed results for the second quarter of FY 21.HRB in the second quarter of FY 21 has reported the adjusted loss per share of $1.05, missing the analysts’ estimates for the adjusted loss per share of 85 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 9.8 percent to $177 million in the second quarter of FY 21, beating the analysts’ estimates for revenue by 7.5%.
During the second quarter of fiscal 2021, the company repurchased and retired approximately 9.5 million shares at an aggregate price of $150 million, or $15.83 per share. The company declared a quarterly cash dividend of $0.26 per share, which is payable on January 4, 2021 to shareholders of record as of December 7, 2020.
Meanwhile, on November 9, 2020, the court granted Sand Canyon’s (“SCC”) motion for summary judgment in both of the previously-disclosed Homeward cases and dismissed Homeward’s claims against SCC in their entirety.
On the other hand, the company introduced its Block Horizons strategy, the next phase of the company’s strategic transformation and provided an in-depth look at the three strategic imperatives that comprise the company’s new long-term strategy. These imperatives are Small Business, Financial Products, and Block Experience. Building on an already-significant base of 2.4 million small business customers, the company will go to market with two small business brands: Wave and Block Advisors. With approximately one-third of H&R Block’s 20 million tax customers being under-banked, the company is building on its Emerald Debit Card program, which is linked to the tax event, for development of a year-round mobile banking platform. Further, the company is reimagining tax preparation for a digital-first world, blending technology and data with human expertise and care.
Moreover, the company’s new long-term strategy, includes the expected annual revenue growth goal of 3-6% annually, EBITDA to grow as fast or at a faster rate than revenue, redeployment of savings to the highest ROI opportunities, maintaining a strong balance sheet and access to liquidity to support growth investments and returning capital to shareholders through dividends and share repurchases.