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
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