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H&R Block, Inc. (NYSE:HRB) missed earnings with its latest second-quarter results, disappointing overly-optimistic forecasters. H&R Block missed analyst estimates, with revenues of US$179m and a statutory loss per share (eps) of US$1.80 falling 2.4% and 7.8% below expectations, respectively. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for H&R Block
Taking into account the latest results, the current consensus from H&R Block's four analysts is for revenues of US$3.72b in 2025. This would reflect a modest 2.7% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 28% to US$4.98. Before this earnings report, the analysts had been forecasting revenues of US$3.72b and earnings per share (EPS) of US$4.97 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$62.33, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values H&R Block at US$70.00 per share, while the most bearish prices it at US$49.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await H&R Block shareholders.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of H&R Block'shistorical trends, as the 5.6% annualised revenue growth to the end of 2025 is roughly in line with the 5.4% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 10.0% annually. So it's pretty clear that H&R Block is expected to grow slower than similar companies in the same industry.