H&R Block Posted Better-than-Expected Q2 Earnings

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On Wednesday, H&R Block, Inc. (NYSE: HRB) announced its financial results for the second quarter of fiscal 2018.

Revenue for the second quarter increased from $131.3 million for the same period last year to $140.9 million, beating analysts’ estimates of $128 million. The rise in revenue was mainly due to higher international tax preparation fees, positive fluctuations in foreign exchange rates, and favorable pre-season results in the domestic market, according to the company.

For the second quarter, the company reported loss from continuing operations of $0.71 per share, which was narrower than analysts’ estimates of loss of $0.73 per share.

In addition, for the second quarter, total operating expenses rose 5% to $357 million. The company said that the increase was mainly due to increases in compensation costs and occupancy costs.

“During my first two months at H&R Block, I have been encouraged by the hard work of our associates and franchisees and their dedication to delivering for our clients and shareholders,” Jeff Jones, the president and chief executive officer of H&R Block, said in the statement on Tuesday.

“I'm confident in our plans for the upcoming tax season, which are centered on operational excellence, new products and partnerships, and compelling marketing and promotions.  We're excited for the tax season to begin,” he said.

In the statement, the company also declares a quarterly dividend of $0.24 per share, payable on January 2, 2018 to shareholders on record as of December 4, 2017.

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