Intuit cuts 3Q estimates on 'tough tax season'

TurboTax maker Intuit trims estimates for fiscal 3Q and year, after 'tough tax season'

Associated Press

MOUNTAIN VIEW, Calif. (AP) -- Tax preparation and personal finance software maker Intuit Inc. said Wednesday that it had a "tough tax season" and lowered its expectations for its fiscal third quarter.

The company said results from its consumer tax business haven't been as strong as it expected. Intuit said that as of April 16, sales of TurboTax units grew 3 percent to 25.3 million and electronic filings rose 4 percent to 26.5 million. Intuit lowered its forecasts for the third quarter and the full year.

Intuit shares lost $5.94, or 9.3 percent, to $58.25 in aftermarket trading.

Intuit expects adjusted earnings of $2.92 to $2.94 per share and revenue of $2.17 billion to $2.18 billion in the third quarter. Previously it forecast net income of $2.99 to $3.04 per share and revenue of $2.22 billion to $2.28 billion.

According to FactSet, analysts estimated net income of $3.01 per share on $2.25 billion in revenue, according to FactSet. Intuit is scheduled to report its results after the market closes on May 21.

For the full year Intuit said net income will be between $3.31 and $3.35 per share, with revenue around $4.5 billion. That's down from earlier estimates of $3.40 to $3.46 per share in adjusted net income and revenue of $4.55 billion to $4.65 billion. The company said TurboTax revenue should grow about 4 percent for the year.

Analysts forecast net income of $3.43 per share and $4.6 billion in revenue.

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