Intuit Trims Second-Quarter View on Sluggish Tax Season

By Ezequiel Minaya 

Intuit Inc., the maker of TurboTax and QuickBooks, on Wednesday warned that a later-than usual tax season has cut into its fiscal second-quarter results, and that revenue and earnings for the period would be weaker than expected.

Still, Intuit said it expects the delayed revenue will shift to the third quarter, and the company left its full-year estimates unchanged.

Intuit said data from the Internal Revenue Service indicates that tax-preparation season is unfolding at a slower pace, with total returns processed through Jan. 27 down 33% compared with last year.

Intuit said it now expects to log revenue for the three months ended Jan. 31 of $1.01 billion to $1.02 billion, with adjusted earnings of 24 cents to 25 cents a share. The company had previously forecast revenue of $1.05 billion to $1.07 billion and earnings of 33 cents to 36 cents a share.

Intuit also projected quarterly operating income of $15 million to $20 million, down from $60 million to $70 million previously.

The company typically collects the bulk of its earnings during tax season and often posts losses in its off-season quarters.

Shares of the company retreated 3.4% in premarket trading to $113.50.

Write to Ezequiel Minaya at [e-mail]

(END) Dow Jones Newswires

February 08, 2017 09:08 ET (14:08 GMT)

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