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 24,462.94 -201.95 -0.82%
Nasdaq 7,146.13 -91.93 -1.27%
S&P 500 2,670.14 -22.99 -0.85%
Treasuries 2.95 0.04 1.27%
Data as of 11:50am ET
Company Price Change % Change
General Electric Co 14.54 0.55 3.93%
Bank of America Corp... 30.26 0.08 0.27%
Apple Inc 165.72 -7.08 -4.10%
Ford Motor Co 10.82 -0.14 -1.28%
Advanced Micro Devic... 9.99 -0.12 -1.19%
Data as of Apr 20
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.41%4.35%
15 yr fixed3.81%3.75%
5/1 ARM4.20%4.15%
30 yr refi4.38%4.30%
15 yr refi3.79%3.72%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates: