H&R Block shares fall on wider Q2 loss

H&R Block shares fall on wider Q2 loss

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(Global Markets) - H&R Block's (HRB.N) shares tumbled as much as 10 percent, a day after the largest U.S. tax preparer reported a wider second-quarter loss due to one-time charges.

The shares, which touched a low of $14.45, were trading down 9 percent at $14.66 in early trade on the New York Stock Exchange on Friday.

The company, on Thursday, posted a loss of 38 cents a share from continuing operations, excluding items, compared with the consensus estimate of 34 cents.

H&R Block has been shedding its non-core assets such as its consulting unit in order to focus on its tax preparation business in the light of increasing competition, especially from digital software products like Intuit's (INTU.O) TurboTax.

Sand Canyon Corporation, the company's now-closed subprime mortgage unit, saw an increase in mortgage putback claims in the quarter and took new claims of around $483 million, prompting a $20 million increase in Sand Canyon's loan-loss reserves.

The company is expected to disclose new capital deployment and tax services strategy leading up to the tax filing season at its investor day next Thursday.

(Reporting by Aman Shah in Bangalore; Editing by Sreejiraj Eluvangal)