MOUNTAIN VIEW (dpa-AFX) - Accounting software maker Intuit Inc (INTU), Tuesday reported a better-than-expected increase in third-quarter profit as the strong tax season lifted the demand for its QuickBooks and TurboTax software.
The company lowered its overall guidance for the fourth quarter, and for fiscal 2014, it slashed its net earnings outlook. Following the announcement, Intuit shares sank more than four percent in after-hours trade on the Nasdaq.
During the third quarter, Intuit benefited from strong transition to the cloud, grew share in its tax businesses and expanded small business subscriber base.
Mountain View, California-based Intuit posted quarterly net earnings of $984 million or $3.39 per share, compared with $822 million or $2.71 per share last year.
Excluding items, adjusted earnings for the quarter were $3.53 per share, compared with $2.94 per share a year ago.
On average, 17 analysts polled by Thomson Reuters estimated earnings of $3.50 per share for the quarter. Analysts' estimates typically exclude special items.
Intuit's revenues for the quarter climbed 17 percent to $2.39 billion from $2.09 billion in the prior year.
Fourteen analysts had a consensus revenue estimate of $2.38 billion for the quarter.
Among segments, small business group revenue climbed 8 percent from last year, with its QuickBooks Online subscribers up 36 percent. Consumer group revenue increased 13 percent and professional tax group revenue jumped 32 percent.
For the fourth quarter, Inuit now expects net loss of $0.12 to $0.10 per share, adjusted earnings of $0.06 to $0.08 per share and revenues of $683 million to $713 million.
The company earlier projected a net loss of $0.04 to $0.02 per share, adjusted earnings of $0.11 to $0.13 per share and revenues of $710 million to $720 million.
Analysts currently expect earnings of $0.12 per share on revenues of $712.2 million for the quarter.
For fiscal 2014, Intuit estimates net earnings of $3.08 to $3.12 per share, adjusted earnings of $3.54 to $3.58 per share and revenues of $4.48 billion to $4.51 billion.
Intuit earlier expected net earnings of $3.11 to $3.19 per share, adjusted earnings of $3.52 to $3.60 per share and revenues of $4.44 billion to $4.53 billion.
Analysts currently expect earnings of $3.58 per share on revenues of $4.49 billion for the year.
Intuit also announced a quarterly cash dividend of $0.19 per share.
Intuit stock closed Tuesday at $76.84, down $0.23 or 0.30%, on a volume of 2.55 million shares on the Nasdaq. In after hours, the stock $3.15 or 4.10% at $73.69.
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