Investing.com -- Intuit lifted its full-year guidance and issued an upbeat current-quarter outlook Thursday after reporting fiscal Q3 results that topped Wall Street estimates as a strong tax season spurred demand for its TurboTax and QuickBooks software.
Intuit Inc (NASDAQ:INTU) jumped more than 8% in premarket trading Friday.
For the three months ended Apr. 30, the software group reported adjusted per-share earnings of $11.65 on revenue of $7.75 billion, compared with analysts’ estimates for $10.91 on revenue of $7.56B.
On the profitability side, Intuit’s operating margin of 56% topped the Street’s 54% estimate.
The results were driven by "outstanding tax season and continued momentum in our Global Business Solutions Group and Credit Karma," the company said.
"We see investors revisiting the Intuit story," Barclays analysts said in a post-earnings note.
"With stability coming back to the Tax line, we feel more confident in the strength of the business," they noted.
For Q4, non-GAAP diluted earnings per share was expected between $2.63 and $2.68, while revenue was guided in a range of $3.723B to $3.760B. That topped the estimates for adjusted EPS of $2.6 on revenue of $3.53B.
For the full-year, the company now expects non-GAAP diluted earnings per share of $20.07 to $20.12, representing growth of approximately 18% to 19%, up from previous guidance for growth of 13% to 14%.
Revenue was guided in range of of $18.723B to $18.760B, growth of approximately 15%, up from previous guidance for growth of approximately 12% to 13%.
"This tax season indicates that TurboTax is pivoting successfully to the assisted category," BofA analysts commented in a note. "The growth algorithm has shifted more to average selling price (ASP) growth. This is likely to be a durable growth driver, given the CPA/assisted segment is the largest U.S. filing base."