What happened
Shares of tax advisory company H&R Block (HRB 0.59%) are down 6.8% as of 2:55 p.m. EDT, despite the company reporting an earnings beat after close of trading yesterday.
Analysts had forecast that H&R Block would earn $5.13 per share in its fiscal fourth quarter 2021 (pro forma), but in fact, the company says its adjusted profit was $5.16. On the top line, however, the company's $2.33 billion in Q4 revenue fell just short of analysts' expected $2.35 billion.
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So what
Over the course of the whole year, and "including total tax season performance through the [government-extended] May 17, 2021 filing deadline," management says that it "substantially exceeded its original fiscal 2021 revenue and earnings outlook" for the year.
Although analysts were disappointed, H&R Block notes that its revenue for all of fiscal 2021 grew 29% year over year to $3.4 billion, and its net income for the year was a robust $3.11 per share -- more than 100 times the $0.03 per share in profit booked in fiscal 2020.
Now what
Management did not give guidance for what it expects to earn in fiscal 2022, however, a fact that may have upset investors today -- especially with analysts warning that this year won't be as rich as last for H&R Block. According to published estimates, Wall Street is looking for profits to decline to $3.08 this year, and for sales to slip back below $3.4 billion.
Fiscal 2022 might be a bit farther off than you expect. Management says it is changing its fiscal year-end date from April 30 to June 30 in order to "allow for better alignment of complete tax seasons in comparable fiscal periods."
Translation: Expect a new and updated fiscal 2021 earnings report to follow this last one, just three months from now.
