American's largest tax preparer, H&R Block Inc., has posted a slimmer-than-expected loss for the current fiscal year's second-quarter, on the back of a better Tax Services segment results. A quarterly loss of $128.6 Million, or 38 cents per share, was posted, a substantial improvement from the $135.9 Million worth of loss posted for same period last year.

Revenue recorded a fall of about 7% to $326.1 Million for the aforementioned period.

Analysts polled by Thomson Reuters had estimated a loss of 40 cents a share, on revenue of $347 Million. Revenue from tax services surged by 4% to $109.3 Million.

For the 2010 fiscal year, the firm has pegged its earnings forecast from continuing operations of $1.60 to $1.80 per share.

"By targeting and taking out non-value added costs, we have been able to reinvest in important initiatives that we expect will drive better client attraction and retention", Chief Executive Russ Smyth.

H&R Block offers tax return preparation services both in person, as well as online via its TaxCut software. It has been noted that the company usually loses money in its fiscal first and second quarters, which fall outside the main U. S. tax filing season.

H&R shares closed on Monday at a new high of $20.48.