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 19,271.04 100.62 0.52%
Nasdaq 5,314.53 58.88 1.12%
S&P 500 2,208.96 17.01 0.78%
Treasuries 2.44 0.05 1.92%
Data as of 10:11am ET
Company Price Change % Change
Bank of America Corp... 21.76 0.53 2.50%
Chesapeake Energy Co... 7.50 0.27 3.71%
Apple Inc 109.15 -0.75 -0.68%
Freeport-McMoRan Inc... 15.76 0.34 2.20%
Ford Motor Co 12.32 0.08 0.65%
Data as of 9:56am ET
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.99%4.02%
15 yr fixed3.18%3.16%
5/1 ARM3.40%3.38%
30 yr refi4.01%4.07%
15 yr refi3.20%3.19%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates: