H&R Block Disappoints Despite Narrowed Losses

KANSAS CITY, Mo. (TheStreet) -- H&R Block (HRB) posted weaker-than-expected quarterly financial results after the closing bell Tuesday.

Investors voiced their disappointment, bidding H&R Block shares 0.4% lower in after-hours trading. During intraday trading the stock rose 4.1%, or 53 cents, to close at $13.55.

H&R Block narrowed its fiscal second quarter net losses to $109 million, or 36 cents loss per share, from a loss of $128.6 million, or 38 cents loss per share, in the year-earlier period.

The tax preparation service said it "typically reports a second quarter operating loss due to the seasonality of its business."

Total revenue fell 1% to $322.9 million, from $326.1 million.

Analysts' consensus call had been for revenue of $339.5 million.

"Our second quarter results met our expectations and we are aggressively preparing for the key second half of our fiscal year," said CEO Alan Bennett. "Reversing our early-season client losses is our top priority and we will take strong actions to drive more traffic into our offices."

Tax services revenue grew 1.5% year-over-year to $110.9 million.

H&R Block's RSM McGladrey business saw revenues fall 1.5% year-over-year to $203.4 million.

The company repurchased and retired 3.5 million shares in the recent quarter at a cost of $44.3 million. H&R Block maintained its previously announced quarterly cash dividend of 15 cents per share, to be paid next on Jan. 3 to shareholders of record on Dec. 13.

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