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.