H&R Block down despite reporting earnings beat

H&R Block reported earnings that topped estimates, posting a revenue of $308M and an adjusted loss per share of $1.17, beating the estimated $242.6M in revenue and an adjsuted loss per share of $1.55. Yahoo Finance's Jared Blikre joined Yahoo Finance to break down the key metrics.

Video Transcript

ADAM SHAPIRO: Got to get to Jared Blikre for some breaking news. H&R Block out with their earnings.

JARED BLIKRE: That's right, stock's down just a little bit, 1.8%, in after hours trading. But it was a beat on all the key metrics. Top line revenue coming in at $308 million. That beat estimates handily of $242.6 million. But guess what? It's down 41% year over year. So, better than feared, but still looking at some big losses.

Adjusted loss per share from continuing ops, that came in at $1.17 versus an estimated loss per share of $1.55, so a beat there. And also looking at operating expenses of $571.8 million. That's down 15% year over year. Also reiterating their full year financial outlook, and if you're wondering why the drop here, they got a quote from one of the C-suite executives. Fiscal third quarter revenue was impacted by a delayed start to the US tax season and also a later than usual opening of IRS e-file, which resulted 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, also increased fees from emerald card transactions and improved international results. So, again, beats on both the top and bottom lines. The stock's still off about 1.8% here. We'll just take a quick look at a one-year chart. Very choppy action here, even going back 20 years. Lots of chop for this particular stock, guys.

ADAM SHAPIRO: Jared Blikre, thank you very--