H&R Block shares rally after narrower-than-expected quarterly loss

H&R Block Inc. said Tuesday it lost $97 million, or 35 cents a share, in the fiscal first quarter, compared with a loss of 40 cents a share a year ago. Revenue grew 3% to $138 million in the quarter, the tax preparing company said. Analysts polled by FactSet had expected the company to lose 40 cents a share on sales of $136 million. H&R Block launched a $1.5 billion share buyback program, or about 16% of the company's market capitalization. The tax preparer also said it had finished divesting H&R Block Bank, ending "a multi-year effort to refocus the company on its core tax business and to no longer be regulated as a savings and loan holding company." H&R Block shares rose nearly 8% in after-hours trading Tuesday after ending the regular session down 3.2%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.