Intuit posts 4Q loss; adjusted results beat street

Intuit posts 4th quarter loss but adjusted results beat expectations; increases dividend

Associated Press

MOUNTAIN VIEW, Calif. (AP) -- Intuit Inc. posted a loss for its fiscal fourth quarter as the maker of Quicken, TurboTax and other financial software coped with some special items. But it broke even on an adjusted per-share basis, with revenue rising 12 percent.

The Mountain View, Calif., company also said Tuesday that it had raised its dividend.

Intuit posted a loss of $16 million, or 5 cents per share, for the quarter that ended July 31. That's compared with net income of $4 million, or 1 cent per share, in the same quarter last year. After adjusting for share-based compensation costs and other items, its earnings from continuing operations were flat versus 1 cent per share last year.

Its revenue increased to $634 million from $567 million.

Analysts, on average, were anticipating that the company would break even on an adjusted basis for the quarter with revenue of $622.5 million, according to FactSet.

Intuit is reshaping itself to better focus on its core business. In August, it completed the sale of Intuit Financial Services business for nearly $1.03 billion. It also completed the sale of its Intuit Health business that same month. In September, it completed the sale of its Websites business for $60 million.

The company earned $858 million, or $2.83 per share, for the full year versus $792 million, or $2.60 per share, last year. It earned $3.20 per share on an adjusted basis versus $2.89 per share last year. Its revenue increased to $4.17 billion from $3.81 billion.

Intuit President and CEO Brad Smith said that the company's fiscal 2013 was a year of exciting wins and some challenges.

"We've seized the opportunity to capture lessons learned, make the necessary adjustments, and position the company for a stronger future as we look ahead," Smith said in a statement.

Intuit has reorganized some of its business units to better suit its market needs. It also said that it is planning new product launches and a major marketing campaign to help build its small business segment.

Intuit expects to report an adjusted loss between 10 to 11 cents per share for its fiscal first quarter on revenue between $595 million and $605 million. Analysts were forecasting a loss of 3 cents per share on revenue of $620 million.

For the full year, the company anticipates earning between $3.52 and $3.60 per share on an adjusted basis with revenue between $4.44 billion and $4.53 billion. Analysts had forecast $3.56 per share on revenue of $4.53 billion.

Intuit also said that it is increasing its quarterly dividend by 12 percent to 19 cents per share. The new dividend is payable on Oct. 18 to shareholders of record as of Oct. 10.

Shares of the company dipped 14 cents to $63 in after-hours trading following the report. Its stock fell 28 cents to close regular trading at $63.14.

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