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Intuit shares fall on lower outlook

Intuit lowers outlook on state and federal tax delays; shares fall in trading

The Associated Press

Intuit Inc. shares fell Wednesday after the company said it expects some of its revenue to shift from its second to third fiscal quarter because of a delay in tax season.

The maker of TurboTax, QuickBooks and other accounting software lowered its quarterly outlook Tuesday. The company's shares fell 4 percent by midday Wednesday.

Intuit said that while electronic filing dates have varied from tax season to tax season, it has increasingly been delayed beyond mid-January. This year it was delayed until Jan. 31, which was the end of Intuit's fiscal second quarter. The IRS delayed the filing season as it tried to catch up after the government shutdown last October.

The company is expecting a shift of about $120 million to its third quarter. About $80 million is due to the IRS delay and approximately $40 million is related to state tax returns that were received but not processed before the fiscal second quarter ended Jan. 31.

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Intuit now expects to earn 1 to 2 cents per share on an adjusted basis on revenue of $775 million to $780 million for its second quarter. Analysts polled by FactSet had expected earnings 14 cents per share on revenue of $891 million.

The late opening of electronic filing is not expected to impact its full-year results and the company reiterated its full-year performance goals.

Jefferies analyst Ross MacMillan said the outlook still implies a substantial decline from last year in consumer tax revenue, given that the acceptance date was only a day later. But the analyst noted that there "is still a lot of tax season ahead" and noted that the company has maintained its 2014 expectations, although he believes the season has not started strong.

Wedbush analysts Gil Luria and Aaron Turner were more forgiving, reiterating an "Outperform" rating on the company's stock and $82 price target. They said that they believe the company has "sufficiently lowered the bar for upcoming tax season expectations and the delay should not impact the company's ability to exceed guidance."

Intuit shares fell $2.93 to $69.79 by midday. The Mountain View, Calif.-based company's stock is up nearly 14 percent as of Tuesday's close.