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 16,351.38 293.03 1.82%
Nasdaq 4,749.98 113.87 2.46%
S&P 500 1,948.86 35.01 1.83%
Treasuries 2.19 0.02 0.97%
Data as of 11:16pm ET
Company Price Change % Change
Bank of America Corp... 15.85 0.32 2.06%
Apple Inc 112.34 4.62 4.29%
General Electric Co 24.57 0.69 2.89%
Alcoa Inc 9.32 0.10 1.08%
Netflix Inc 105.44 -0.35 -0.33%
Data as of 4:01pm ET
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.85%3.83%
15 yr fixed2.97%2.96%
5/1 ARM3.13%3.11%
30 yr refi3.96%3.95%
15 yr refi3.07%3.06%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates: