H&R Block ( NYSE: HRB ) increased its quarterly dividend by 7% to $0.29 per share, started a new $1.25B stock buyback authorization and issued stronger-than-expected FY2023.
In addition, its Q4 adjusted EPS of $1.43 beat the $1.24 consensus and increased from $1.39 in the year-ago quarter. H&R Block ( HRB ) stock rose 2.7% in Tuesday after-hours trading.
"Because of our robust free cash flow generation, we are able to return significant value to shareholders. This year we repurchased 13% of shares outstanding and are increasing the dividend by 7%," said H&R Block ( HRB ) Chief Financial Officer Tony Bowen.
The tax preparation service company expects FY2023 revenue of $3.535B-$3.585B, exceeding the $3.50B consensus; and adjusted EPS of $3.70-$3.95, topping the $3.68 average analyst estimate.
Revenue for the quarter ended June 30, 2022 increased to $1.050B from $1.045B in the Q4 FY2021 and easily beat the average analyst estimate of $994.8M.
U.S. assisted tax preparation revenue of $638.0M rose from $608.3M a year ago; U.S. DIY tax preparation revenue of $130.6M slipped from $132.4M a year earlier; and International revenue of $79.9M fell from $81.1M.
Total operating expenses of $738.5M increased from $725.1M a year earlier.
Conference call at 4:30 PM ET.
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H&R Block boosts dividend, starts $1.25B buyback, issues strong FY23 guidance