H & R Block Posts Wider Q2 Loss, Shares Down

Shares of

dropped over 3.5 percent in after-hours trading Monday after the company reported wider-than-expected loss for its fiscal second quarter. The Kansas City, Missouri-based company reported a quarterly loss of $145 million, or $0.55 per share, versus a year-ago loss of $112 million, or $0.41 per share. The company's loss from continuing operations widened to $0.54 per share from $0.41 per share. Its revenue fell 4.6 percent to $128.4 million. Analysts were estimating a loss of $0.48 per share on revenue of $132 million. "We are excited about the upcoming tax season, with a focus on executing our Tax Plus strategy. Our tax professionals are ready to provide the expert advice expected by our clients and our DIY software offerings are the best they have ever been" said Bill Cobb, H&R Block's president and chief executive officer. "Additionally, with the divestiture of H&R Block Bank, we have completed the final step in a multi-year journey that now allows us to take positive steps towards the capital structure that is appropriate for our business." H&R Block shares dropped 3.82 percent to $35.47 in the after-hours trading session.