Intuit Loss Narrows; To Divest Demandforce, QuickBase

(RTTNews) - Accounting software maker Intuit Inc (INTU), on Thursday reported a return to a profit in the fourth quarter, driven by gains from discontinued operations, even as increased operating expenses offset a seven percent climb in revenues.

Intuit said it plans to divest Demandforce, QuickBase and Quicken businesses to focus on small business success, and to do the nations' taxes in the U.S. and Canada.

As a result, Intuit said its revenues in fiscal 2016 will be reduced by about $250 million and adjusted earnings by about $0.10 per share.

The company also increased its dividend by 20 percent to $0.30 per share.

Intuit shares dropped about 4 percent in after-hours trade on the Nasdaq, following the announcement of results.

Intuit reported fourth-quarter net income of $14 million or $0.05 per share, compared with a loss of $29 million or $0.10 per share last year.

Excluding gains from discontinued operations, stock-based compensation expense and other one-time items, adjusted loss for the quarter was $0.05 per share, compared with a profit of $0.01 per share a year ago.

On average, 17 analysts polled by Thomson Reuters expected a loss of $0.12 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the fourth quarter rose 7 percent to $696 million from $649 million a year earlier.

Fourteen analysts had a consensus revenue estimate of about $739 million for the quarter.

Revenue at its small business segment slid 5 percent from a year ago, reflecting changes in desktop offerings that resulted in ratable revenue recognition. The company said it added 110,000 QuickBooks Online subscribers in the quarter.

Consumer tax revenue climbed 8 percent.

Operating expenses increased to $826 million from $704 million last year.

For the first quarter of fiscal 2016, Intuit expects a net loss of $0.27 to $0.26 per share, adjusted loss of $0.04 to $0.03 per share and revenues of $660 million to $680 million. Analysts currently expect earnings of $0.06 per share on revenues of $776.36 million.

For the fiscal year 2016, the company projects net earnings of $2.50 to $2.55 per share, adjusted earnings of $3.40 to $3.45 per share and revenues of $4.53 billion to $4.60 billion. Analysts currently expect earnings of $3.82 per share on revenues of $5.04 billion for 2016.

INTU closed Thursday at $102.93, down $3.34 or 3.14%, on the Nasdaq. In after hours, the stock dropped $3.93 or 3.82%, to trade at $99.40.