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 20,778.03 230.27 1.12%
Nasdaq 5,987.92 77.40 1.31%
S&P 500 2,374.98 26.29 1.12%
Treasuries 2.27 0.04 1.61%
Data as of 3:37pm ET
Company Price Change % Change
Bank of America Corp... 23.63 0.92 4.06%
Chesapeake Energy Co... 5.40 -0.11 -2.08%
General Electric Co 29.65 0.10 0.34%
Micron Technology In... 26.83 -0.49 -1.79%
Advanced Micro Devic... 13.16 0.16 1.27%
Data as of 3:22pm ET
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.85%3.87%
15 yr fixed3.05%3.05%
5/1 ARM3.11%3.16%
30 yr refi3.85%3.87%
15 yr refi3.07%3.06%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates: