Intuit Expects Q3 Results To Miss Guidance, Withdraws FY Outlook

(RTTNews) - Intuit Inc. (INTU) Thursday said its revenue and earnings for third quarter are expected to be lower than guidance due to the negative impact of COVID-19 on its small business customers. Intuit also withdrew its fiscal 2020 guidance.

For the third quarter, Intuit now expects revenues of $2.99 billion to $3.00 billion, compared to prior range of $3.60 billion to $3.63 billion. Adjusted earnings are now expected to be between $4.46 and $4.49 per share, down from the prior range of $5.90 to $5.95 per share. Analysts currently estimate revenues of $3.34 billion and earnings of $5.48 per share.

Earlier, the company expected its full year revenues of $7.44 billion to $7.54 billion.

"During the first half of the fiscal year we grew total company revenue 14 percent, and we saw this momentum continue into the beginning of the third quarter. However, the COVID-19 pandemic, which led to the extension of the IRS tax filing deadline and local shelter-in-place directives, negatively impacted performance beginning in mid-March," said CEO Sasan Goodarzi. "Small businesses are facing a loss of income and a lack of savings to help them weather the storm."

Intuit expects Small Business and Self-Employed Group revenue growth of around 10 percent in the third quarter, driven by online ecosystem revenue growth of about 27 percent year-over-year.