Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

H&R Block stock tumbles on warning

@CNNMoneyInvest April 26, 2012: 7:57 AM ET
H&R Block said it will cut about 350 full-time positions and close about 200 company-owned offices, which will result in a drop in seasonal temporary employment.

H&R Block said it will cut about 350 full-time positions and close about 200 company-owned offices, which will result in a drop in seasonal temporary employment.

NEW YORK (CNNMoney) -- Shares of H&R Block tumbled 16% in premarket trading Thursday after the tax prep company announced significant staff cuts and office closings, and projected weaker-than-expected earnings.

The company also announced a series of changes in its top executive ranks in its after-hours statement Wednesday, including that it is looking for a new chief financial officer, and that the president of its retail tax services is leaving the company effective April 30.

Shares tumbled $2.74 to $14 ahead of the market open.

The company said it will cut about 350 full-time positions throughout its Kansas City headquarters and nationwide field organization, and close about 200 company-owned offices, which will result in a drop in seasonal temporary employment.

The moves are expected to save the company of $85 million to $100 million a year. It will take a $30 million charge in the quarter associated with the staff reductions.

H&R Block (HRB) also expects full-year earnings of $1.09 to $1.15 a share, well below the forecasted earnings of $1.39 a share. To top of page

Index Last Change % Change
Dow 18,143.45 -195.79 -1.07%
Nasdaq 5,269.15 -49.39 -0.93%
S&P 500 2,151.13 -20.24 -0.93%
Treasuries 1.56 -0.01 -0.64%
Data as of 1:54am ET
Company Price Change % Change
Chesapeake Energy Co... 6.12 -0.63 -9.33%
Bank of America Corp... 15.16 -0.22 -1.43%
Procter & Gamble Co 88.23 -1.23 -1.37%
Wells Fargo & Co 44.37 -0.94 -2.07%
Qualcomm Inc 67.45 4.00 6.30%
Data as of Sep 29
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.35%3.63%
15 yr fixed2.62%2.65%
5/1 ARM2.90%2.95%
30 yr refi3.38%3.49%
15 yr refi2.64%2.68%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates: