H&R Block Down 15% on Disappointing Full Year Guidance

H&R Block

is down significantly in pre-market trading after announcing strategic realignment and FY 2012 guidance yesterday. The company sees a fully year EPS of $1.09-1.15 vs $1.39 estimate. H&R Block said the company will also eliminate approximately 350 full time jobs. Bill Cobb, H&R Block's President and Chief Executive Officer noted: "Following the completion of my first tax season and a strategic review of our organization, we believe this realignment is an important next step in becoming a nimbler, more profitable, and more client-centric company. We have settled on a new organizational structure and identified more efficient ways to operate. We believe these actions will allow us to compete more effectively, more quickly respond to our clients' needs, and invest in our future as we intensify efforts in our core businesses." H&R Block is currently trading at $14.21, a loss $2.53 or 15.11%.