Post Earnings Coverage as Intuit Tops Market Expectations with 8 Percent Revenue Growth

LONDON, UK / ACCESSWIRE / August 26, 2016 / Active Wall St. announces its post-earnings coverage on Intuit Inc. (NASDAQ: INTU). The company revealed its fourth quarter fiscal 2016 results on August 23rd, 2016. The maker of TurboTax and QuickBooks, posted better-than-expected results with 8% revenue growth; however the company issued tepid revenue guidance for the upcoming quarter. Register with us now for your free membership at: http://www.activewallst.com/register/.

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Earnings Reviewed

For the period ended on July 31, 2016, Intuit posted net loss of $40 million, or $(0.16) per share, compared with net income of $14 million, or $0.05 per share, in the corresponding year ago quarter. Earnings excluding items were $0.08 per share, above Wall Street’s expectations of a loss of $0.02 per share. Intuit generated revenue of $754 million in Q4 FY16 higher by 8.3% from $696 million in Q4 FY15, and above management’s guided range of $720 million to $740 million.

For FY 2016, Intuit reported revenue of $4.7 billion, up 12%. The company announced that total QuickBooks Online subscribers jumped 41% to finish the year with 1,513,000 paid subscribers. Intuit’s Consumer Tax revenue rose 10%, with TurboTax Online units growing 15% and total TurboTax units growing 12%. The company reported GAAP earnings per share of $3.69 for FY 2016, versus $1.28 in fiscal 2015.

“This was a strong year from start to finish,” said Brad Smith, Intuit’s chairman and chief executive officer, “Our tax businesses had another strong year, turning up the innovation machine to compete effectively in the marketplace.”

Segment-wise

Intuit’s Small Business division revenue increased 10% for the quarter and 9% for the year, driven mainly by strong customer acquisition, along with continuous subscriber growth for QuickBooks Online and QuickBooks Self-Employed. QuickBooks Self-Employed subscribers totaled 85,000 at the year end. Furthermore, revenues from the Small Business online ecosystem increased 25% for the year, primarily due to online customer acquisition and online payroll customers grew 17% for the year. Revenues from Intuit’s Consumer Tax unit grew 10% on y-o-y basis. The company’s ProConnect generated professional tax revenues of $428 million for the year.

The company typically collects the bulk of its earnings during tax season and often posts losses in its off-tax-season quarters.

In order to focus on its main tax and small-business units Intuit sold marketing and communications software business Demandforce to Internet Brands in January 2016; collaboration platform QuickBase to Welsh, Carson, Anderson & Stowe a New York-based private equity firm; and Quicken to HIG capital in March 2016.

Financials

As of July 31st, 2016 Intuit had cash and cash equivalents of $638 million compared to $808 million in the year ago quarter. The company’s long-term debt was $488 million at the quarter end, down $12 million from the year ago quarter.

During FY 2016, Intuit repurchased $2.3 billion of shares at an average price of $91. The company also received board approvals for an additional share repurchase authorization of $2 billion, bringing the total authorization to $2.4 billion.

Intuit also announced its board approval for a $0.34 per share dividend for Q1 FY17, payable on October 18, 2016. This represents a 13% increase versus last year.

Outlook

For FY 2016, Intuit is forecasting adjusted earnings in the range of $4.30 per share to $4.40 per share on revenue of $5 billion to $5.1 billion. Analysts estimate adjusted earnings of $4.33 per share on revenue of $5.08 billion. For Q1 FY17, the company is estimating revenues in the range of $740 million to $760 million and adjusted earnings in the range of $0.1 per share to $0.3 per share.

Stock Performance

Intuit’s shares closed marginally higher by 0.14%, ending the trading session at $110.00 on August 25, 2016. A total of 1.55 million shares exchanged hands on the trading session. The company’s share price has gained 14.98% on YTD basis and has advanced 33.65% in the last twelve months.

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