Intuit (INTU) Stock Falls in After-Hours Trading Despite Q3 Earnings Beat

After Tuesday's market close, Intuit (INTU) delivered financial results that topped estimates for the fiscal 2016 third quarter and raised its full year guidance.

Author:: Amanda Gomez
Publish date:: May 24, 2016 4:27 PM EDT

NEW YORK (TheStreet) -- Intuit (INTU) - Get Report stock is declining 1.73% to $105.45 in after-hours trading on Tuesday even though the business and financial management solutions provider reported better-than-expected financial results for the fiscal 2016 third quarter.

The Mountain View, CA-based maker of QuickBooks and TurboTax posted earnings of $3.43 per share, while analysts surveyed by Thomson Reuters had estimated $3.21 per share in earnings.

Revenue increased 8% year over year to $2.3 billion for the quarter ended April 30, beating revenue estimates of $2.25 billion.

"This was simply a great season for TurboTax," CEO Brad Smith said in a statement. "This was a strong quarter for small business as well, led by robust new-user growth in our QuickBooks Online ecosystem."

Following the strong quarter, the company raised its full year earnings guidance to $3.63 to $3.65 per share, compared with the previous outlook of $3.45 to $3.50 per share.

Revenue is expected to be between $4.66 billion to $4.68 billion for the year, up from the prior guidance of $4.53 billion to $4.6 billion.

Separately, Intuit has a "buy" rating and a letter grade of B- at TheStreet Ratings because of the company's revenue growth, notable return on equity, increase in net income, expanding profit margins and growth in earnings per share.

You can view the full analysis from the report here: INTU

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