Intuit Q1 Loss Narrows, Tops Estimates

(RTTNews) - Accounting software maker Intuit Inc (INTU), said Thursday its loss for the first quarter widened from a year ago, despite an increase in revenues, hurt by expenses, while the prior year included one-time gains. However, the quarterly loss was smaller than Wall Street estimates with revenues surpassing expectations.

Intuit reaffirmed its guidance for the full year 2015. For the current quarter, Intuit expects to report a loss, but provided strong revenue guidance as it accelerates to the Cloud platform.

"We began fiscal 2015 on a strong note. Our shift to the cloud continues to accelerate customer growth, led by QuickBooks Online," said Brad Smith, Intuit's chief executive officer. "We're also gearing up for tax season and are looking forward to our lineup of innovative solutions coming to market."

Intuit shares gained more than 2 percent in after-hours trade on the Nasdaq.

Intuit, based in Mountain View, California, posted first-quarter net loss of $84 million or $0.29 per share, compared with a loss of $11 million or $0.04 per share last year.

Results for the quarter included stock-based compensation expense of $61 million, while the prior year included such expense of $47 million and gains from discontinued operations of $46 million.

Excluding items, adjusted loss for the quarter was $0.10 per share, compared with a loss of $0.06 per share a year ago.

On average, 16 analysts polled by Thomson Reuters estimated a loss of $0.20 per share for the quarter. Analysts' estimates typically exclude special items.

Intuit makes the personal finance programs Quicken and TurboTax, small business accounting program QuickBooks, and professional tax solutions ProSeries and Lacerte. The company has been boosting its online subscriptions and hopes to benefit in the long term from the Cloud platform strategy.

Intuit's revenues for the quarter rose 8 percent to $672 million from $622 million in the prior year. Twelve analysts had a consensus revenue estimate of $620.8 million for the quarter.

Among segments, small business group revenue for the quarter rose 5 percent from last year, with QuickBooks Online subscribers up 43 percent. Consumer tax revenue rose 36 percent and professional tax group revenue was up 46 percent.

For the second quarter, Intuit expects adjusted loss of $0.13 to $0.11 per share on revenues of $780 million to $800 million. Analysts currently expect a loss of $0.11 per share on revenues of $767.5 million for the quarter.

For the full year 2015, Intuit still expects adjusted earnings of $2.45 to $2.50 per share on revenues of $4.28 billion to $4.38 billion. Analysts currently project earnings of $2.48 per share on revenues of $4.34 billion for the year.

INTU closed Thursday at $90.73, down $0.69 or 0.75%, on a volume of 1.7 million shares on the Nasdaq. In after hours, the stock gained $1.96 or 2.16% at $92.55.