Miller Value Partners, an investment management firm, published its “Miller Value Partners Income Strategy” second-quarter 2022 investor letter – a copy of which can be downloaded here. The Miller Income Strategy lost 17.7% in the second quarter of 2022, underperforming the 10.0% decline for the ICE BofA US High Yield Index. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.
In its Q2 2022 investor letter, Miller Value Partners Income Strategy mentioned H&R Block, Inc. (NYSE:HRB) and explained its insights for the company. Founded in 1955, H&R Block, Inc. (NYSE:HRB) is a Kansas City, Missouri-based tax preparation company with a $6.3 billion market capitalization. H&R Block, Inc. (NYSE:HRB) delivered a 67.91% return since the beginning of the year, while its 12-month returns are up by 61.01%. The stock closed at $39.56 per share on August 01, 2022.
Here is what Miller Value Partners Income Strategy has to say about H&R Block, Inc. (NYSE:HRB) in its Q2 2022 investor letter:
“H&R Block (NYSE:HRB) was the top contributor for the quarter, gaining 36.0%. H&R Block reported 3Q22 revenue of $2.1 billion, +3.9% year-over-year (Y/Y), ahead of consensus of $1.9 billion, and Adjusted Earnings Per Share (EPS) of $4.11, unchanged from 3Q21 EPS, ahead of analyst expectations for EPS of $3.75. The company repurchased 10 million shares for $226 million in the quarter, bringing total fiscal-year 2022 (FY22) share repurchases to $550 million, representing 13% of the company’s shares outstanding. Management also increased its FY22 guidance for revenue of $3.38-3.43 billion, up 3.0% from prior guidance of $3.25-3.35 billion at the midpoint, and EBITDA of $850-875 million (Enterprise Value (EV)/EBITDA of ~8.4x), up 9.2% from prior guidance of $765-815 million at the midpoint. H&R Block’s new mobile banking platform, Spruce, which launched in January, has shown encouraging progress so far, accumulating 150k customer signups and $60 million in customer deposits as of 4/30/22.
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Our calculations show that H&R Block, Inc. (NYSE:HRB) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. H&R Block, Inc. (NYSE:HRB) was in 25 hedge fund portfolios at the end of the second quarter of 2022, compared to 29 funds in the previous quarter. H&R Block, Inc. (NYSE:HRB) delivered a 52.68% return in the past 3 months.
In May 2022, we also shared another hedge fund’s views on H&R Block, Inc. (NYSE:HRB) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.
Disclosure: None. This article is originally published at Insider Monkey.
