Intuit Alters Guidance Following Tax-Law Changes
By Allison Prang
Intuit Inc. (INTU) on Friday lowered some of its fiscal second-quarter financial targets due to a late opening to the tax season, but the financial-products company raised its annual earnings guidance, citing recent changes in U.S. tax laws.
The maker of TurboTax tax-preparation software said it expects some tax revenue to move to third quarter, and it now expects second-quarter revenue of $1.16 billion to $1.165 billion. It had previously expected revenue of $1.16 billion and $1.18 billion.
The company also lowered its forecast for quarterly adjusted operating income to $115 million to $120 million from a prior range of $130 million to $140 million.
Intuit said it expects to post a quarterly loss of 8 cents a share to 9 cents a share for the quarter, compared with its prior expectation of a profit of 8 cents a share to 11 cents a share. The new estimate takes into account a $39 million charge related to the new tax law.
Adjusted earnings, however, are now expected to now fall between 34 cents and 35 cents a share, compared with prior predictions of between 31 cents and 34 cents a share. Analysts polled by Thomson Reuters are expecting adjusted earnings of 31 cents a share.
Intuit reports second-quarter earnings on Feb. 22. The company's second quarter ended Jan. 31.
Intuit also raised some of its fiscal 2018 guidance. The company now expects to earn between $4.20 a share and $4.30 a share, up from its earlier forecast of $4.00 a share and $4.10 a share. On an adjusted basis, Intuit expects to earn between $5.30 a share and $5.40 a share. It had been expecting to earn between $4.90 a share and $5.00 a share.
The company reiterated its prior fiscal-year expectations for revenue and adjusted operating income.
Intuit shares edged up 0.2% premarket and are up 32% in the past year.
Write to Allison Prang at email@example.com
(END) Dow Jones Newswires
February 09, 2018 09:39 ET (14:39 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.