WASHINGTON (dpa-AFX) - H&R Block, Inc. (HRB), the largest U.S. tax preparer, said Monday after the markets closed that its second quarter loss widened from last year, as higher costs and expenses more than offset a slight increase in revenue.
The company's quarterly adjusted loss per share was also wider than analysts estimated and its quarterly revenue missed analysts' forecast.
'I am pleased with the progress we've made this offseason in preparation for tax season 2015. We've made important investments in our business this year, which will enable us to improve the customer experience and operate more productively in the coming years,' said Bill Cobb, H&R Block's president and chief executive officer.
H&R Block shares are currently losing 6.02% in after hours trading after closing the day's regular trading session at $34.05, down 34 cents. The shares trade in a 52-week range of $26.92 to $35.09.
H&R Block typically reports a second quarter operating loss due to the seasonality of its core U.S. tax business.
For the second quarter ended October 31, 2014, the company reported a net loss of $112.0 million or $0.41 per share, compared to a net loss of $104.9 million or $0.39 per share for the year-ago quarter.
Loss from continuing operations for the second quarter was $113.2 million or $0.41 per share, compared to a loss from continuing operations of $103.0 million or $0.38 per share in the prior year quarter.
Excluding items, adjusted loss from continuing operations for the second quarter was $126.3 million or $0.45 per share, compared to an adjusted loss from continuing operations of $112.3 million or $0.42 per share in the second quarter last year.
On average, 8 analysts polled by Thomson Reuters expected the company to report a loss of $0.42 per share for the second quarter. Analysts' estimates typically exclude special items.
Total revenue for the second quarter grew slightly to $134.63 million from $134.34 million in the same quarter last year. Five analysts had a consensus revenue estimate of $141.99 million for the second quarter.
Total operating expenses increased 6% to $319.1 million from $301.2 million a year ago, driven by higher depreciation and amortization from planned office and technology upgrades and increased wages.
H&R Block said in October that the regulatory approval process regarding its purchase and assumption agreement with BofI Federal Bank would not be complete this calendar year. Thus, the company expects to continue offering its financial services products to its clients through H&R Block Bank for the upcoming tax season.
In April H&R Block Bank and BofI entered into the P&A agreement, following which H&R Block Bank agreed to sell certain assets and transfer certain liabilities, including all of its deposit liabilities, to BofI.
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