What Happened:

Shares of tax preparation company H&R Block (NYSE:HRB) jumped 9.2% in the afternoon session after the company reported first-quarter earnings results. H&R Block beat analysts' revenue and EPS expectations this quarter, driven by better-than-expected pricing and volumes in its assisted tax preparation business. 

On the other hand, its Wave Financial revenue missed; this is a tiny segment for the company but is key for diversifying its revenue away from taxes and becoming a less seasonal business. Zooming out, we think this was still a decent quarter, showing that the company is staying on track.

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What is the market telling us:

H&R Block's shares are not very volatile than the market average and over the last year have had only one move greater than 5%. In context of that, today's move is indicating the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

H&R Block is up 10.2% since the beginning of the year. Investors who bought $1,000 worth of H&R Block's shares 5 years ago would now be looking at an investment worth $1,986.

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