By late morning, shares had added 5.2% to $77.71.
The software developer recorded revenue of $782 million, 12% lower than a year earlier but higher than consensus of $778.9 million according to Thomson Reuters. Lower sales were due to processing delays and changes in Intuit's tax offerings that will shift revenue into the April-ending third quarter.
Due to the government shutdown in October, the Internal Revenue Service shifted the date at which Americans could begin filing 2013 tax returns by 10 days to Jan. 31, meaning many sales have been shifted to the next quarter.QuickBooks saw revenue increase 12% and QuickBooks Online growth of 30%. Total QuickBooks subscribers grew 26% over the quarter. The small business segment, under which QuickBooks is housed, is expected to grow 10% to 12% over the year ending July. In the tax season through to Feb. 15, Intuit saw TurboTax sales increase 7% to 14 million units, boosted by 11% growth of TurboTax Online. As a result of shifted revenue, management upwardly revised its third-quarter forecasts to net income between $3.46 and $3.51 a share and sales of $2.33 billion to $2.4 billion. Analysts predicted net income of $3.49 a share on $2.36 billion in sales. Must Read: Fed Says LIBOR 'Understated,' Describes Wachovia Deposit Run at 2008 Meeting TheStreet Ratings team rates INTUIT INC as a Buy with a ratings score of B-. The team has this to say about their recommendation: "We rate INTUIT INC (INTU) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, increase in net income and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
- You can view the full analysis from the report here: INTU Ratings Report
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