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 18,080.14 21.45 0.12%
Nasdaq 5,092.09 36.02 0.71%
S&P 500 2,117.69 4.76 0.23%
Treasuries 1.92 -0.03 -1.54%
Data as of 12:59am ET
Company Price Change % Change
Microsoft Corp 47.87 4.53 10.45%
Apple Inc 130.28 0.61 0.47%
Comcast Corp 59.64 0.41 0.69%
AT&T Inc 34.01 -0.22 -0.64%
Xerox Corp 11.99 -1.15 -8.75%
Data as of Apr 24
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.78%3.79%
15 yr fixed2.98%2.93%
5/1 ARM3.06%2.99%
30 yr refi3.85%3.85%
15 yr refi3.05%3.00%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates: