H&R Block (NYSE: HRB) reported Q2 EPS of $0.85, $1.77 better than the analyst estimate of ($0.92). Revenue for the quarter came in at $161 million versus the consensus estimate of $161.06 million.

Fiscal Second Quarter Highlights1

• Fiscal second quarter financial results were in line with expectations, and the company reiterated its revenue growth and margin outlook for the full fiscal year.
• Revenues increased 8%, to $161 million due to Wave and improved tax return volumes.
• Loss per share from continuing operations2 increased $0.10 to $0.93; adjusted loss per share from continuing operations2,3 increased $0.07 to $0.85.
• The company repurchased and retired 5.7 million shares at an aggregate price of $137 million, or $23.94 per share.

"We've made significant progress to digitally enable all facets of our business to deliver expertise and care in new and compelling ways," said Jeff Jones, H&R Block's president and chief executive officer. "These efforts, along with Wave and our momentum from last year, position us well to deliver for this fiscal year and for the long term."

"We were pleased with our strong revenue growth in the fiscal second quarter," said Tony Bowen, H&R Block's chief financial officer. "We’re well-positioned for success in the upcoming tax season and have reiterated our revenue growth and margin outlook for the fiscal year."

Key Financial Metrics

• Fiscal second quarter results were in line with expectations.
• Total revenues increased $11.9 million, or 8.0%, to $160.8 million due to Wave and improved tax return volumes.
• Total operating expenses increased $39.4 million, or 10.8%, to $403.5 million due to Wave, planned investments in our technology roadmap, and legal expenses, which were partially offset by lower occupancy costs.
• Pretax loss increased $29.3 million, or 12.6%, to $261.3 million.
• Loss per share from continuing operations increased $0.10 to $0.93; adjusted loss per share from continuing operations increased $0.07 to $0.85. The change in pretax loss, along with lower shares outstanding, impacted loss per share. While beneficial on a full-year basis, the lower share count negatively impacts EPS in quarters in which the company reports a loss. These impacts were partially offset by an increased tax benefit.

For earnings history and earnings-related data on H&R Block (HRB) click here.