Intuit Lowers 2Q Outlook on Late Opening to Tax Season

By Michael Dabaie

Intuit Inc. said revenue and operating income for its second fiscal quarter were lower than expected due to the tax season opening later this year.

The Internal Revenue Service recently said it would accept and process returns starting Feb. 12, allowing the IRS time to do additional programming and testing of its systems following the tax-law changes that provided a second round of Economic Impact Payments and other benefits.

Intuit, the maker of TurboTax, QuickBooks, Credit Karma and Mint, backed its full-year revenue, operating income, and earnings per share guidance.

For the second quarter ended Jan. 31, the company said it expects revenue of $1.57 billion to $1.575 billion, down from the prior range of $1.935 billion to $1.965 billion.

Shares were down 2%, to $381.50, in premarket trading.

Intuit said it sees GAAP operating loss of $30 million to $25 million, down from the prior GAAP operating income range of $171 million to $191 million. Guidance for non-GAAP operating income was $230 million to $235 million, down from the prior range of $455 million to $475 million.

The company said it expects earnings per share of 6 cents to 7 cents, down from the prior range of 43 cents to 49 cents.

Intuit said it expects adjusted EPS of 67 cents to 68 cents, down from the prior range of $1.25 to $1.31.

The company said it expects full-year results for Intuit and all business segments to be in line with guidance issued in December.

Intuit backed fiscal 2021 revenue of $8.81 billion to $8.995 billion, up about 15% to 17%.

The company said it sees GAAP operating income of $1.92 billion to $1.99 billion, down about 9% to 12% and adjusted operating income of $2.975 billion to $3.045 billion, up about 12% to 14%.

The company guided for fiscal 2021 EPS of $5.30 to $5.50, a decline of about 21% to 23%, and adjusted EPS of $8.20 to $8.40, for growth of about 4% to 7%.

Intuit said it will report second-quarter results on Feb. 23.

Write to Michael Dabaie at [e-mail]

(END) Dow Jones Newswires

February 09, 2021 08:59 ET (13:59 GMT)

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