Intuit Profit Tops Estimates on Tax Software Demand

Intuit Inc., the world’s biggest maker of tax-preparation software, reported third-quarter profit that beat analysts’ estimates after more U.S. taxpayers filed returns electronically.

Excluding some costs, profit was $1.68 a share, the company said today in a statement. That compared with a $1.60 average estimate among analysts in a Bloomberg survey. The quarter ended April 30, two weeks after the U.S. filing deadline.

Intuit makes most of its profit in its third quarter, when the majority of U.S. taxpayers file their returns. Revenue from TurboTax sold through consumer retail stores fell 11 percent in the tax season, while online sales advanced 36 percent. Tax- preparation software accounts for more than 40 percent of Intuit’s revenue, making it the company’s biggest business.

“TurboTax sales fell short on the consumer side, but made up for it in other areas,” said Ross Macmillan, an analyst with Jefferies & Co. in New York. He has a hold rating on the shares, which he doesn’t own.

Intuit, based in Mountain View, California, rose 78 cents, or 3.1 percent, to $26 in late trading. The shares, up 6 percent this year, closed at $25.22 on the Nasdaq Stock Market.

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