Wednesday, February 12, 2014

Intuit Updates Second-quarter Outlook to Reflect Later Tax Season Opening Company Reiterates Full-year Guidance

Intuit Inc. INTU -2.81% today announced it expects a shift of tax revenue, as well as GAAP and non-GAAP operating income and earnings per share, from its second fiscal quarter (which ended Jan. 31) to its third fiscal quarter as the Internal Revenue Servicedid not begin accepting tax returns until Jan. 31. The company also reiterated full fiscal-year guidance.
For the second quarter, Intuit expects to report:
The date of the IRS e-file opening has varied from tax season to tax season, but has increasingly been delayed beyond mid-January, this year to Jan. 31. The reasons have been associated with the passage of late tax legislation, late budget and debt agreements, and this year because of the 17-day government shutdown last fall.
The total expected shift is approximately $120 million. About $80 million of the anticipated shift in tax revenue is related to the delayed IRS opening, causing taxpayers to file later than expected. Approximately $40 million is related to state tax returns that were received but not processed before the fiscal second quarter ended on Jan. 31.
The late opening of e-file is not expected to impact full-year revenue or operating income for Intuit or the Consumer and Professional Tax segments. Intuit reiterated full-year revenue, operating income, and earnings per share guidance.
For fiscal year 2014, the company expects:
“We are simply adjusting the timing, not our expectations,” said Sasan Goodarzi, senior vice president and general manager of Intuit’s Consumer Tax Group. “We remain optimistic about our strong brand campaign that has already received accolades, and are confident that new innovations across our end-to-end experience are already delivering in the current year.”
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. 20. The second unit update will be provided at the end of the tax season.