NEW YORK (TheStreet) -- H&R Block (HRB) - Get Report stock is advancing by 7.44% to $35.40 in after-hours trading on Tuesday, after the company reported a narrower than expected loss and revenue that surpassed estimates for the first quarter of fiscal 2016.
The company reported a loss of 35 cents per share on revenue of $137.72 million for the quarter ended July 31.
Analysts were expecting a loss of 40 cents per share on revenue of $136 million for the most recent quarter.
Last year, H&R Block posted non-GAAP loss of 40 cents per share on $133.59 million in revenue for the quarter ended July 31, 2014.
The company also announced it completed the sale of H&R Block Bank to Bofl Federal Bank a month earlier than expected.
"We are pleased that we have successfully closed the bank transaction and are committed to ensuring a smooth transition for our clients as we prepare for the upcoming tax season," CEO Bill Cobb said in a statement.
Additionally, the Kansas City, Mo.-based tax preparation provider announced a $3.5 billion share buyback program effective through June 2019.
Separately, TheStreet Ratings team rates BLOCK H & R INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate BLOCK H & R INC (HRB) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins, solid stock price performance and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow."
You can view the full analysis from the report here: HRB Ratings Report