Intuit Slips To Loss On Lower Revenue, Expenses; Lifts Q3 Outlook

(RTTNews) - Accounting software maker Intuit Inc. (INTU), Thursday reported a slip to loss in the second quarter from a year ago, hurt mainly by a 12 percent slump in revenues across key segments with margins under pressure. Excluding items, the company posted a profit which was in line with Wall Street estimates, although revenues fell short.

The company lifted its guidance for the third quarter and kept its expectations unchanged for fiscal year 2014. Intuit shares were up 2.6 percent in after-hours trade on the Nasdaq, following the announcement.

Intuit makes software like QuickBooks and TurboTax to file taxes.

The Mountain View, California-based company posted a second-quarter net loss of $37 million or $0.13 per share, compared to net earnings of $71 million or $0.23 per share last year.

Results for the quarter include stock-based compensation expense of $52 million, among other items.

Excluding items, adjusted earnings for the quarter were $7 million or $0.02 per share, compared with $91 million or $0.30 per share a year ago.

On average, 13 analysts polled by Thomson Reuters estimated earnings of $0.02 per share for the quarter. Analysts' estimates typically exclude special items.

Intuit reported second-quarter revenues that slipped 12 percent to $782 million from $884 million in the prior-year quarter.

Nine analysts had a consensus revenue estimate of $788.88 million for the quarter.

Small business group revenue climbed 8 percent from last year, partly led by Demandforce which was acquired in May 2012. The company said its QuickBooks Online subscribers increased 30 percent.

Meanwhile consumer group tumbled 28 percent and professional tax group revenue fell 12 percent.

Total expenses for the quarter increased to $828 million from $800 million a year ago.

For the third quarter, Inuit now expects net earnings of $3.33 to $3.38 per share, adjusted earnings of $3.46 to $3.51 per share and revenues of $2.325 billion to $2.400 billion. The company earlier expected net earnings of $3.12 to $3.17 per share, adjusted earnings of $3.25 to $3.30 per share and revenues of $2.245 billion to $2.290 billion. Analysts currently expect earnings of $3.50 per share on revenues of $2.37 billion for the quarter.

For the fourth quarter, the company projects a net loss ranging between $0.04 to $0.02 per share, adjusted earnings of $0.11 to $0.13 per share and revenues of $710 million to $720 million.

For fiscal year 2014, Intuit still expect net earnings in the range of $3.11 to $3.19 per share, adjusted earnings of $3.52 to $3.60 per share and revenues of $4.440 billion to $4.525 billion. Analysts currently expect earnings of $3.57 per share on revenues of $4.49 billion.

Intuit stock closed Thursday at $73.85, up $0.43 or 0.59%, on a volume of 1.9 million shares on the Nasdaq. In after hours, the stock gained $1.95 or 2.64% at $75.80. In the past year, the stock ranged between $55.54 - $77.78.