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 20,654.24 -47.26 -0.23%
Nasdaq 5,889.15 14.01 0.24%
S&P 500 2,359.72 1.15 0.05%
Treasuries 2.38 -0.03 -1.12%
Data as of 1:26pm ET
Company Price Change % Change
Bank of America Corp... 23.40 -0.07 -0.32%
Chesapeake Energy Co... 5.84 0.45 8.35%
Advanced Micro Devic... 13.76 0.08 0.55%
Ford Motor Co 11.67 0.02 0.20%
Apple Inc 143.65 -0.15 -0.10%
Data as of 1:11pm ET
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.01%4.05%
15 yr fixed3.19%3.23%
5/1 ARM3.17%3.26%
30 yr refi4.01%4.07%
15 yr refi3.19%3.24%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates: