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Intuit Adjusts Second-quarter Outlook Reflecting Slow Start for Overall Tax Market: Reiterates Full-year Guidance
MOUNTAIN VIEW, Calif. – Feb. 8, 2017 – Intuit Inc. (Nasdaq: INTU) today announced that revenue and operating income, and diluted earnings per share from its second fiscal quarter were lower than expected due to the tax season forming more slowly than usual. The company expects consumer tax revenue to shift to the third fiscal quarter and therefore reiterated full fiscal-year guidance.
Intuit’s second fiscal quarter ended Jan. 31. For the second quarter, the company expects to report:
- Revenue of $1,010 million to $1,015 million.
- GAAP operating income of $15 million to $20 million.
- Non-GAAP operating income of $100 million to $105 million.
- GAAP diluted earnings per share of $0.04 to $0.05.
- Non-GAAP diluted earnings per share of $0.24 to $0.25.
Consumer tax revenue is recognized as returns are filed. Internal Revenue Service data issued Feb. 6 suggests that the broader tax preparation market is forming later than usual, with total returns processed through Jan. 27 down 33 percent and self-prepared e-file receipts down 31 percent compared with last year. Intuit’s processed consumer tax returns for that same period are down 29 percent.
“Data points to the tax category forming slowly for all prep methods,” said Dan Wernikoff, executive vice president and general manager of Intuit’s TurboTax business. “We believe we have a strong and winning hand that combines innovation across the end-to-end experience, an effective go-to-market campaign and great value for taxpayers. One thing we know about the tax business is that everyone needs to file by April 18. We are looking forward to a strong finish to the season.”
The company expects full-year revenue and operating income for Intuit and all business segments to meet expectations in line with guidance issued on Nov. 17. Intuit reiterated full-year revenue, operating income, and earnings per share guidance. For fiscal year 2017, the company expects:
- Revenue of $5 billion to $5.1 billion, growth of 7 to 9 percent.
- GAAP operating income of $1.33 billion to $1.38 billion, growth of 7 to 11 percent.
- Non-GAAP operating income of $1.675 billion to $1.725 billion, growth of 8 to 11 percent.
- GAAP diluted earnings per share of $3.47 to $3.57, versus $3.69 in fiscal 2016. Fiscal 2016 earnings per share includes $0.65 net income per share from discontinued operations.
- Non-GAAP diluted earnings per share of $4.30 to $4.40, growth of 14 to 16 percent.
The company will announce second-quarter results and will issue the first of two season-to-date unit updates for its consumer tax products and services on Feb. 23. The second units update will be provided at the end of the tax season.
About Intuit Inc.
Intuit Inc. creates business and financial management solutions that simplify the business of life for small businesses, consumers and accounting professionals.
Its flagship products and services include QuickBooks® and TurboTax®, which make it easier to manage small businesses and tax preparation and filing. Mint provides a fresh, easy and intelligent way for people to manage their money, while Intuit's ProConnect brand portfolio includes ProConnect Tax Online, ProSeries® and Lacerte®, the company's leading tax preparation offerings for professional accountants.
Founded in 1983, Intuit had revenue of $4.7 billion in its fiscal year 2016. The company has approximately 7,900 employees with major offices in the United States, Canada, the United Kingdom, India, Australia and other locations. More information can be found at www.intuit.com.