HRB's second-quarter revenues and earnings top expectations. Shares fall 7.1% and guidance signals flat demand.
Block Inc (NYSE:SQ) will hand down its fourth quarter earnings next month with expectations skewed toward a modest beat, though Jefferies analysts say the stock will likely need clearer near-term earnings momentum and improved visibility into Square's profitability trends to move meaningfully higher. Wall Street analysts, on average, expect revenue to increase to $6.36 billion from $6.03 billion, while earnings per share are expected to decline to $0.65 from $0.71.
XYZ's Square renews its Mission District Corner Store lease, expanding BIGFACE Coffee residency to drive foot traffic, sales and community ties for local sellers.
HRB targets steady earnings and revenue growth as assisted tax prep, AI-powered DIY tools and Spruc banking drive volume and strengthen customer ties.
Plus, the framework of a Greenland deal sparks a stock-market rebound
Block has provided more than $200 billion in credit to customers across its Cash App Borrow, Afterpay and Square Loans products.
XYZ remains a great rebound Buy, driven by the twice-raised FY2025 guidance and the ambitious 2028 targets implying double-digit growth and improved operating leverage. The fintech's valuation remains compelling at FWD P/E of 28.88x and a 3Y PEG of 0.80x, while offering a more than doubling upside potential to a $158.80 long-term price target. XYZ's renewed growth strategy leverages AI-driven features, demographic expansion, and aggressive cross-selling to accelerate adoption and boost profitability.
In 3Q25, Block's revenue grew by 2.33% to $6.12 billion, with subscription/services and transaction segments up 23% and 9% y/y, offsetting bitcoin weakness. Despite a broader economic slowdown, the company's initiatives, such as Cash App's network expansion and Neighborhoods, may encourage further growth, offsetting any potential macroeconomic effects. Further developments in Block's investments in automation may reduce overall expenses, helping the company expand its margins and improve its overall profitability.
Block increased by 17% over the last month. You might feel compelled to purchase more shares, or perhaps consider decreasing your investment.
H&R Block, Inc. trades at 8x earnings despite solid fundamentals, robust share repurchases, and a 3.9% dividend yield. Recent share price weakness stems from a missed EPS guidance based on a one-time tax credit, CEO transition, AI overhang, and poorly timed buybacks. I see significant upside if the new CEO streamlines operations, exits non-core businesses, especially Spruce, and controls expenses.
XYZ expands its payments ecosystem as Upstart accelerates AI-driven lending growth, setting up a fintech faceoff as both chase long-term upside.
XYZ expands Square with Thrive and Afterpay with several more brands. Among other partnerships are Blackbird Bakery and Grubhub to strengthen its ecosystem.