Intuit tops Q3 earnings targets after strong tax season

Intuit has also raised its guidance for the fiscal year.
Written by Natalie Gagliordi, Contributor on

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Intuit reported solid third quarter financial results Tuesday thanks to healthy sales over the 2018 tax season. The personal and small business financial software maker reported a net income of $1.2 billion, or $4.68 per share.

Read also: Intuit takes the wraps off new Quickbooks Assistant chatbot

Non-GAAP earnings were $4.82 per share on top of revenue of $2.93 billion, up 15 percent year-over-year. Wall Street was expecting earnings of $4.68 per share with $2.85 billion in revenue.

The Mountain View, California-based company said it grew total QuickBooks Online subscribers by 45 percent, ending the third quarter with roughly 3.2 million customers worldwide. Meanwhile, revenue from its small business and self-employed group increased 41 percent.

The company doubled the base of QuickBooks Self-Employed subscribers to roughly 683,000, while consumer group grew by 15 percent fiscal year-to-date.

"We achieved very strong results this quarter, with overall revenue growth of 15 percent, and double-digit growth in both the Consumer Group and the Small Business and Self-Employed Group," said Intuit CEO Brad Smith. "We are pleased with our momentum across the Online Ecosystem and we are encouraged by our strong performance through the tax season, including the successful debut of TurboTax Live, which we'll continue to scale next season."

Intuit's guidance for the current quarter is a bit mixed. The company expects revenue of $940 million to $960 million, and EPS from 22 cents to 24 cents. Wall Street is looking for revenue of $891 million and earnings of 29 cents per share.

Intuit raised its guidance for the fiscal year to a range of $5.92 billion to $5.94 billion, which represents growth of 14 to 15 percent. Analysts expect revenue of $5.79 billion. Intuit also said it expects to end fiscal 2018 with 3.4 million QuickBooks Online subscribers.

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