Intuit cuts Q3 outlook, withdraws 2020 guidance on COVID-19 impact

The company cited the pandemic's impact on small business customers and the extension of the IRS tax filing deadline to mid July.

Intuit said Thursday that it has withdrawn guidance for its fiscal 2020 and cut its outlook for the third quarter, citing COVID-19's impact on small business customers and the extension of the IRS tax filing deadline to mid July.

The third quarter is usually Intuit's tax season and the company generally performs well above its average on sales of consumer tax software. 

But with the tax filing date moving to July, Intuit said its Consumer Group revenue will decline roughly 15 percent year over year, resulting in a total revenue decline of approximately 8 percent year over year in the third quarter.

Intuit now expects third quarter revenue to be between $2.99 billion and $3 billion, down from $3.6 billion to 3.63 billion, with EPS from $4.46 to $4.49, down from $5.90 to $5.95 a share. 

Wall Street had set an earnings target of $6.17 per share and $3.59 billion in revenue. 

"During the first half of the fiscal year we grew total company revenue 14 percent, and we saw this momentum continue into the beginning of the third quarter. However, the COVID-19 pandemic, which led to the extension of the IRS tax filing deadline and local shelter-in-place directives, negatively impacted performance beginning in mid-March," said Intuit CEO Sasan Goodarzi. "Small businesses are facing a loss of income and a lack of savings to help them weather the storm."

Intuit also announced that the company drew down the full amount of its $1 billion revolving credit facility.