H & R Block Inc (NYSE:HRB) saw its shares decline Wednesday, a day after reporting a narrower-than-expected loss for its third quarter.
The Kansas City, Mo.-based tax preparation giant reiterates its revenue growth and earnings outlook for the fiscal year.
Its fiscal third quarter revenue was impacted by a delayed start to the U.S. tax season and a later-than-usual opening of IRS e-file resulting in a 41% decline to $308 million. These impacts were partially offset by an increase in small business payments processing and payroll volume at Wave, increased fees from Emerald Card transactions, and improved international results.
GAAP loss per share from continuing operations increased from $(0.66) to $(1.27), and adjusted non-GAAP loss per share increased from $(0.59) to $(1.17), due to the decline in revenue, partially offset by a decline in operating expenses.
Loss per share was also impacted by a lower effective tax rate and lower shares outstanding resulting from repurchases earlier in the year. As a reminder, the lower tax rate and share count negatively impact EPS in quarters in which the company reports a loss, but will be favorable on a full fiscal-year basis.
CEO Jeff Jones said, “We’re taking steps to build the capabilities necessary to execute on our Block Horizons strategy, as we continue to innovate in consumer tax, grow awareness of our small business offerings, and build out our financial products platform.”
HRB shares dipped 21 cents, or1.1%, to $19.55.