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 21,613.43 100.26 0.47%
Nasdaq 6,412.17 1.36 0.02%
S&P 500 2,477.13 7.22 0.29%
Treasuries 2.33 0.07 3.19%
Data as of 10:53pm ET
Company Price Change % Change
Transocean Ltd 8.77 0.26 3.06%
Advanced Micro Devic... 14.11 -0.05 -0.35%
Bank of America Corp... 24.48 0.57 2.38%
Freeport-McMoRan Inc... 14.87 1.91 14.74%
Ford Motor Co 11.27 -0.02 -0.18%
Data as of 4:15pm ET
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.83%3.84%
15 yr fixed3.02%3.05%
5/1 ARM3.14%3.20%
30 yr refi3.81%3.82%
15 yr refi3.01%3.04%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates: