H&R Block Disappoints, Shares Slide

• H&R Block shares down afterhours
• Co remains on track to execute cost reductions

Shares of H&R Block HRB fell nearly five percent after the company reported a worse than expected Q1. EPS was a loss of $0.55 versus estimates for a loss of $0.53. Sales were $125.2 million versus estimates for $132.62 million.
The mid-cap accounting services provider said lower return volumes in the U.S. assisted tax business and currency exchange rates in international business contributed to the decline in revenues. Interest expense levels rose $12.9 million to $21.5 million thanks to about $1 billion of long-term debt issued back in September 2015.
CFO and President Tony Bowen said "While expenses are down slightly this quarter, the majority of our planned reductions will occur after the first quarter."
H&R Block closed Tuesday's regular session down $0.35 or 1.43 percent to $24.20.