Intuit Lowers Quarterly Earnings Guidance Due Later Tax Season Start

On February 9, Intuit Inc. (INTU) announced that quarterly earnings were not on target to meet previous estimates. This year, the IRS moved the date that it would begin accepting tax returns to January 29, which is six days later than last year. As a result, people started working on filing their taxes later than usual. Coupled with tax law changes from the 2017 Tax Cuts and Jobs Act, Intuit lowered quarterly revenue estimates from between $1,160 million and $1,180 million to between $1,160 million and $1,165 million.

 

Sonal received the news and issued an alert at 8:30 am. The next trade was for $153.01 at 9:01 am. Intuit opened for regular market trading at $152.79. The stock price fell throughout the first half of the day before pushed higher towards the close. Intuit closed trading at $157.06. Over the next five trading days, the stock price continued to trend higher. Intuit closed at $171.76 on February 16 for a gain of 12.4% in the week after the event.

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