Intuit Profit Tops Estimates; Lifts FY View

(RTTNews) - Accounting software maker Intuit (INTU), on Thursday reported a plunge in third-quarter profit, hurt by goodwill impairment charges, even as results topped Wall Street estimates, driven by growth in small business segment amid a strong tax season.

The company lifted expectations for the full year, and following the announcement, Intuit shares gained more than 2 percent in after-hours trade on the Nasdaq.

Intuit earlier had seen some pressure after it raised prices of of some of its products, and in February, temporarily halted all state filings upon allegations of fraudulent tax filings.

The company has nonetheless managed to boost its online subscriptions. Intuit said it added 120,000 QuickBooks Online subscribers in the third quarter, bringing total paying subscribers to 965,000; and its U.S. TurboTax Online units increased 13 percent in the tax season.

Intuit, based in Mountain View, California, posted third-quarter net earnings of $501 million or $1.78 per share, compared with $984 million or $3.39 per share last year.

Results for the quarter include goodwill impairment charges of $263 million.

Excluding items, adjusted earnings for the quarter were $2.85 per share, compared with $3.53 per share a year ago.

On average, 17 analysts polled by Thomson Reuters estimated earnings of $2.74 per share for the quarter. Analysts' estimates typically exclude special items.

Intuit said its revenues for the quarter slid 8 percent to $2.19 billion from $2.39 billion in the prior year. Fourteen analysts had a consensus revenue estimate of $2.15 billion 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.

Consumer tax revenue meanwhile gained 4 percent.

For the fourth quarter, Intuit expects adjusted loss of $0.12 to $0.10 per share on revenues of $720 million to $745 million. Analysts expect a loss of $0.05 per share on revenues of $728.4 million.

For the full year 2015, the company now expects adjusted earnings of $2.50 to $2.52 per share on revenues of $4.40 billion to $4.42 billion. Intuit had earlier expected earnings of $2.45 to $2.50 per share on revenues of $4.28 billion to $4.38 billion.

Analysts currently expect earnings of $2.52 per share on revenues of $4.36 billion for the year.

INTU closed Thursday at $104.16, up $0.78 or 0.75%, on a volume of 2.3 million shares on the Nasdaq. In after hours, the stock gained $2.34 or 2.25% at $106.50. In the past year, the shares have trended in the range of $77.16 - $104.74.