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 18,502.99 107.59 0.58%
Nasdaq 5,232.33 13.41 0.26%
S&P 500 2,180.38 11.34 0.52%
Treasuries 1.57 -0.07 -4.22%
Data as of 8:14pm ET
Company Price Change % Change
Bank of America Corp... 15.84 0.05 0.32%
Micron Technology In... 16.91 0.40 2.42%
Apple Inc 106.82 -0.12 -0.11%
Ford Motor Co 12.47 0.09 0.73%
Chesapeake Energy Co... 6.44 0.04 0.63%
Data as of 4:02pm ET
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.43%3.40%
15 yr fixed2.70%2.67%
5/1 ARM2.83%2.84%
30 yr refi3.45%3.43%
15 yr refi2.71%2.71%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates: