(Reuters) – Intuit Inc on Tuesday forecast quarterly profit below analysts’ estimates as it invests in strengthening its products and services to counter stiff competition from new and existing players, sending its shares down 4% in extended trading.
The maker of tax-preparation software TurboTax faces tough competition from rivals including H&R Block, Oracle Corp’s NetSuite and Microsoft Corp’s Dynamics 365 Platform.
The California-based company expects adjusted earnings per share of $1.43 to $1.48 for the fourth quarter, below analysts’ expectations of $1.51, according to Refinitiv data.
“We invested heavily in our data and AI (artificial intelligence) capabilities to deliver accelerated innovation,” Chief Executive Sasan Goodarzi said during a call with analysts.
Intuit reported its third-quarter revenue of $6.02 billion, also missing expectations of $6.1 billion.
Revenue at its personal finance portal Credit Karma, which the company acquired in 2020, fell 12% as rising interest rates hurt borrowings.
On an adjusted basis, the company posted a profit of $8.92 per share in the third quarter, compared with analysts’ estimate of $8.48.
(Reporting by Tiyashi Datta and Kananki Deka in Bengaluru; Editing by Shilpi Majumdar)
