Kansas City, Mo ? H&R Block on Tuesday reported a first-quarter profit for only the second time in its history, largely due to strong performance in the company’s financial services businesses.

The Kansas City, Mo.-based tax preparer reported earnings of $10.6 million, or 6 cents per share, in the quarter that ended July 31, beating the 1 cent per share consensus estimate of analysts surveyed by Thomson First Call.

H&R Block reported a loss of $9.5 million, or 5 cents per share, during the same period last year.

H&R Block traditionally has reported losses during its first three quarters because of the seasonal nature of the income tax preparation business. The only other time the company reported a first-quarter profit was in fiscal 1996, largely due to positive results from its computer services subsidiary, CompuServe Inc., which it sold in 1998.

H&R Block reported $494.8 million in revenue for the first quarter of 2004, up from $431.4 million during the same period last year.