NEW YORK (TheStreet) -- H&R Block (HRB) shares are down 5.9% to $32.05 in early market trading on Tuesday after the tax prep and banking services company reported its second quarter financial results after the closing bell yesterday.
The company reported a second quarter net loss of $112 million, or a 45 cents per diluted share loss on an adjusted basis, wider than the 42 cent per share loss analysts expected for the quarter.
Revenue generated for the quarter was relatively even with the same period last year at $134.6 million, while analysts were expecting the company to make $142 million.
The company said that increased expenses was the reason for the disappointing quarter.
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 few notable 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, growth in earnings per share, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."