H&R Block Inc. (HRB) Wednesday reported a wider loss for the first quarter despite growth in revenues, with the tax-services provider recording higher loss from discontinued operations and lower tax benefits. Loss for the quarter came in line with Wall Street estimates, while revenues trumped expectations.
Kansas City, Missouri-based H&R Block's first-quarter loss widened to $116.2 million or $0.42 per share from last year's loss of $115.2 million or $0.42 per share.
The company typically reports a first quarter operating loss due to the seasonality of its core U.S. tax business. Results for the quarter included $7 million loss from discontinued operations.
Excluding one-time items, adjusted loss from continuing operations for the quarter was $0.40 per share, same as last year. Analysts polled by Thomson Reuters estimated a loss of $0.40 per share for the quarter. Analysts' estimates typically exclude special items.
H&R Block's revenues for the first quarter grew 5 percent to $133.6 million from $127.2 million last year. Analysts had a consensus revenue estimate of $130.2 million for the quarter. The company's top line were helped by a 5-day extension by the Canadian Revenue Agency of the Canadian tax season from April 30 to May 5.
H&R Block recorded a tax benefit of $70 million for the quarter compared to last year's tax benefit of $71.2 million.
Commenting on the results, Chief Executive Bill Cobb said, "I am pleased with the progress we've made this off season in preparation for tax season 2015. This year, we'll continue our Tax Plus strategy to drive profitable growth and maximize the value offering to our clients."
H&R Block is the world's largest consumer tax services provider. In an effort to become leaner, the firm earlier cut jobs and closed under-performing offices while trying to compete better with peers such as Intuit Inc. (INTU), the maker of TurboTax software.
HRB closed Wednesday's trading at $33.50, down $0.10 or 0.30%, on the NYSE. The stock further dropped to $0.07 or 0.21%, in the after-hours trade.
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