H & R Block Posts Narrower Q1 Loss, Shares Surge

Shares of

jumped over 7 percent in after-hours trading after the company reported a narrower-than-expected loss for its fiscal first quarter. The company also announced a $3.5 billion share buyback program and new capital structure plans. The Kansas City, Missouri-based company posted a quarterly loss of $99.7 million, or $0.36 per share, versus a year-ago loss of $116.2 million, or $0.42 per share. Its loss from continuing operations narrowed to $0.35 per share from $0.40 per share. Its revenue rose 3 percent to $138 million in the quarter. However, analysts were expecting a loss of $0.40 per share on revenue of $136 million. The average estimate among 12 Estimize users was for a loss of $0.39 per share and revenue of $135.42 million. "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," said Bill Cobb, H&R Block's president and chief executive officer. "Our teams are now fully focused on developing and executing a strategy that ensures an exceptional client service experience. We look forward to delivering another successful tax year for both our clients and our shareholders." H&R Block shares gained 7.74 percent to $35.50 in the after-hours trading session.