H&R Block Squarely Beats Estimates

KANSAS CITY, Mo. -- H&R Block(HRB Quote), the nation's largest tax preparer, reported better-than-expected profit for its fiscal fourth quarter on Monday as higher fees and more consumer financial services income offset a decline in the number of tax returns it prepared.

The news sent shares up nearly 5 percent in after-hours trading.

The Kansas City, Mo.-based company said it earned $706.9 million, or $2.09 per share, during the three months ended April 30. That's up from year-ago profit of $543.6 million, or $1.66 per share, and above the $2.05 per share expected by analysts surveyed by Thomson Reuters.

Revenue for the quarter sank 3 percent to $2.47 billion, coming in shy of Wall Street's $2.52 billion estimate. ...