logo
Share SHARE
FONT-SIZE Plus   Neg

Intuit Sees Lower Q3 Revenue; Stock Down

Shares of Intuit Inc. (INTU) sank 6 percent on Friday after the financial software provider said it expects third-quarter revenue to be at or slightly below the low end of its prior guidance, citing softness in the digital tax prep category. The company estimates earnings for the period to be within its previous outlook.

Intuit in February had forecast third-quarter revenue of $1.95 billion to $1.99 billion, net earnings of $2.36 to $2.40 per share, and adjusted earnings of $2.47 to $2.51 per share.

Analysts polled by Thomson Reuters currently expect revenue of $1.97 billion and earnings of $2.49 per share for the quarter. Analysts' estimates typically exclude special items.

For the full year 2012, Intuit said it continues to expect net earnings of $2.43 to $2.50 per share, and adjusted earnings of $2.90 to $2.97 per share. Analysts currently expect earnings of $2.96 per share.

Intuit expects full year 2012 consumer tax revenue to grow 11 percent.

Intuit provides financial management solutions for small and medium-sized firms, accounting professionals, and others. Its flagship products include QuickBooks, TurboTax and Quicken.

Detailing its performance through April 18, 2012, Intuit said its offerings of TurboTax federal units rose 6 percent from last year, and TurboTax Online units were up 11 percent.

"Our revenue growth this year benefited from positive mix shifts within our TurboTax product lineup," said Dan Maurer, senior vice president and general manager of Intuit's consumer group.

"While the digital tax prep category grew at the lower end of our expectations this year, we believe we gained about one point of share online and are well positioned for long-term growth."

INTU is trading at $57.38, down $3.52 or 5.78%, on a volume of about 11 million shares on the Nasdaq.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Amazon.com Inc. is working on developing a pair of smart glasses that would allow to summon and interact with virtual assistant Alexa while wearing the device, the Financial Times reported, citing people familiar with the plans. The glasses, which would be required to be connected wirelessly to a smartphone to work, is reportedly designed to look like a regular pair of spectacles. Employees at Bombardier Inc.'s aerospace plant in Toronto plan to walk out of the facility on Wednesday morning. The move is an attempt to put pressure on Boeing Co. to drop a trade complaint against the Canadian plane and train maker. The Baltimore Ravens, a professional American football team, postponed its "DNA Day" event just hours before this season's home opener last Sunday. Orig3n Inc., a Boston-based biotech company sponsoring the event, said in a statement that it is "working to address questions from officials from the state of Maryland."
comments powered by Disqus
Follow RTT