It's not overdone, as the earnings miss is in the range of 20% even before you subtract out the one time charges for restructuring and the legal settlement. And that is for the year, since HRB makes nearly all its income in the one quarter.
Here is the adjusted EPS trend for HRB over the past four years:
So even if this restructing takes out $85 million in cost and otherwise doesn't impact revenue or profitability, at best we will get to around $1.30 in EPS for 2013, which is still below what they made last year even.
The dividend might put a floor under the stock, but it is questionable how long they can maintain an $.80 annual dividend when they are barely making a $1 in EPS, and that is even before the cash outlays for severance and legal settlements.