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: Intuit lowers forecast after slow start to tax season, stock dips

Intuit Inc. shares declined in after-hours trading Monday, after executives trimmed the software company’s sales forecast for the quarter ahead of an earnings report next week.

Intuit
INTU,
-1.26%

disclosed that fiscal second-quarter revenue is expected to come in lower than its forecast, at roughly $2.66 billion. Executives had guided for sales of $2.72 billion to $2.75 billion, and analysts on average were expecting $2.74 billion, according to FactSet.

Intuit’s core software assets — including Quickbooks and TurboTax — are focused on helping businesses and consumers track and manage their finances, making tax season an important time for the business. Executives said Monday that the current tax season is taking longer to get into gear, causing Monday’s pullback in sales expectations.

Executives did not change their full-year revenue forecast, suggesting they believe the expected revenue will move into the third quarter. Executives said they would “refresh” their full-year guidance more completely when reporting results fully on Feb. 24.

“We continue to see strong momentum across the company with Small Business and Credit Karma expected to deliver record high revenues for the quarter with tax on track to deliver full year fiscal 2022 revenue guidance,” Chief Executive Sasan Goodarzi said in a statement.

Intuit shares ducked about 3% lower in after-hours trading following the announcement, after closing with a 1.3% decline at $529.05. The stock has gained 27.8% in the past year, as the S&P 500 index
SPX,
-0.38%

has gained 12.3%.

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