NEW YORK (TheStreet) -- Shares of H&R Block (HRB) - Get Report were gaining 0.8% to $33.70 after-hours Wednesday after the tax preparation company beat analysts' estimates for earnings in the fiscal third quarter.

H&R Block reported a loss of 13 cents a share for the fiscal third quarter, beating analysts' estimates of a loss of 17 cents a share. Revenue grew 154.8% year over year to $509.07 million for the quarter, below analysts' estimates of $517.7 million.

The company said that its revenue for the quarter increased so dramatically due to the IRS opening its e-file system earlier than it did in 2014.

H&R Block said its number of prepared and processed U.S. tax returns fell 4.2% from the year-ago quarter. The decline is due to Affordable Care Act delays and errors, the elimination of certain promotions, competitor pricing strategies, and industry-wide fraud issues, according to the company.

"Despite being disappointed by the decline in early season volume, we are pleased with our monetization, overall return mix, and Tax Plus product attach rates through both our assisted channel and digital do-it-yourself products," President and CEO Bill Cobb said.

TheStreet Ratings team rates BLOCK H & R INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate BLOCK H & R INC (HRB) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

You can view the full analysis from the report here: HRB Ratings Report

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