Intuit Inc. (NASDAQ: INTU) published its earnings report for the fiscal third quarter on Tuesday that came in weaker than what analysts had anticipated. Its guidance for the full year, however, topped Wall Street estimates.
Intuit said that its net income printed at $1.46 billion (£1.03 billion) in the third quarter that translates to $5.30 per share. In the comparable quarter of last year, it had posted $1.08 billion of net income, or $4.11 per share.
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On an adjusted basis, the tax software company earned $6.07 per share in Q3 versus the year-ago figure of $4.49 per share. Intuit recorded $4.17 billion of revenue in the recent quarter, compared to last year’s $3 billion.
According to FactSet, experts had forecast the company to note $4.48 billion of revenue in the third quarter and $6.56 of adjusted EPS. Intuit had fallen shy of Wall Street estimates in the prior quarter (Q2) as well.
Revenue from individual segments
Intuit valued its revenue from its consumer group at $2.4 billion – a 34% increase from the previous year’s third quarter. Small business and self-employed group revenue jumped 20% in Q3 to $1.2 billion.
Other notable figures in its earnings report on Tuesday include $715 million of online ecosystem revenue, or 28% higher than last year, and $316 million of Credit Karma revenue that climbed to a record quarterly high.
Guidance for the full year
For the full financial year, Intuit now forecasts $9.32 to $9.37 of earnings per share. It expects up to $9.4 billion of revenue this year. In comparison, analysts are calling for a lower $9.07 billion of full-year revenue and $8.47 of EPS.
In separate news from the United States, Nordstrom also reported its quarterly financial results on Tuesday.
CEO Sasan Goodarzi’s remarks
Commenting on the quarterly results, CEO Sasan Goodarzi said:
“We had a great tax season growing our share of total tax returns and executing our strategy of expanding our lead in the DIY category and transforming the assisted category. Small Business and Self-Employed Group delivered strong double-digit revenue growth, and Credit Karma revenue reached an all-time high in the quarter.”
Impact on the share price
Intuit shares were reported about 1% up in after-hours trading on Tuesday. Including the price action, the stock is now exchanging hands at $443 per share. In comparison, it had started the year at a lower $372 per share. At the time of writing, it is valued at $120.21 billion and a price to earnings ratio of 66.39.
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