H&R Block Inc (NYSE:HRB) stock advanced more than 11% in Wednesday’s pre-market deals after the tax services group revealed better-than-expected financial results.
It reported US$488mln of revenue for the third quarter, up 8% from the same period of 2016, and it was ahead of consensus forecasts for around US$459mln.
Strong results in assisted and DIY tax categories
The company made a US$245.6mln loss for the three months, or US$1.18 per share, versus US$104.5mln and 50 US cents per share in the same period of the preceding year. Wall Street analysts expected to see a 95 US cents per share loss.
Jeff Jones, H&R chief executive, said: "I'm proud of what we have accomplished so far this tax season, with strong results in both the assisted and DIY tax preparation categories."
"As we look to the second half of the tax season, we'll continue to focus on execution as we leverage our products, partnerships and marketing to deliver on our financial outlook."
On Wall Street, HRB stock gained US$2.89 or 11.21%, changing hands at US$28.66.