Intuit (INTU) Q4 Loss Lower Than Expected, Revenues Top
Zacks Investment Research | Aug 24, 2016 06:46AM ET
Intuit Inc. (NASDAQ:INTU) reported adjusted loss (including stock-based compensation but excluding amortization and other one-time items) from continuing operations of 13 cents per share for the fourth quarter of fiscal 2016, which fared better than the Zacks Consensus Estimate of a loss of 23 cents per share.
On a GAAP basis, loss from continuing operations came in at 16 cents per share, compared with the year-ago loss of 37 cents per share.
Quarter in Detail
This tax-preparation related software maker reported revenues of $754 million, which came above management’s guided range of $720 million to $740 million and surpassed the Zacks Consensus Estimate of $724 million as well. On a year-over-year basis too, revenues were up 8.3% mainly on the back of higher demand resulting from the U.S. tax season.
Services and Other revenues climbed nearly 10.6% to $459 million while product revenues were up 4.9% to $295 million.
Segment-wise, Small Business Group recorded 10% year-over-year growth driven mainly by strong customer acquisition, along with continuous subscriber growth for QuickBooks Online and QuickBooks Self-Employed.
The company recorded the addition of 41% QuickBooks Online subscribers for the year, bringing the total global count to 1,513,000. QuickBooks Self-Employed subscribers totaled 85,000 at the year end. On the other hand, revenues from the Small Business online ecosystem increased 25% for the year, primarily due to online customer acquisition.
Revenues from Consumer Tax grew 10% year over year. ProConnect professional tax revenues were roughly $428 million for the year.
Coming to operational metrics, Intuit reported adjusted gross profit of $588 million, up 11.4% year over year, mainly backed by higher revenues. Also, gross margin expanded 210 basis points (bps) to 78%.
The company reported a 3.1% year-over-year increase in adjusted operating expenses. However, as a percentage of revenues, adjusted operating expenses contracted 430 bps to 83.9%, primarily due to efficient cost management.
The company posted adjusted operating loss of $45 million compared with an adjusted loss of $86 million reported in the year-ago quarter.
Intuit posted adjusted net loss from continuing operations of $32.9 million compared with fourth-quarter fiscal 2015 loss of $67.2 million.
Balance Sheet and Cash Flows
Intuit exited the fiscal fourth quarter with cash and investments of $1.080 billion compared with $1.613 billion in the previous quarter. Long-term debt was $488 million at the quarter end.
Intuit generated $1.401 billion of cash from operational activities during the twelve months ended Jul 31, 2016. During the same time frame, the company also repurchased shares worth $2.3 billion and paid dividends worth $318 million.
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Also, the company authorized an additional share repurchase program of $2 billion during fiscal 2016. For the first quarter of fiscal 2017, the company received an authorization to increase its dividend by 13% on a year-over-year basis to 34 cents per share.
Outlook
Intuit provided fiscal 2017 guidance and issued outlook for the fiscal first quarter.
The company anticipates revenues of $5 billion to $5.1 billion in fiscal 2017, up 7% to 9% year over year. The Zacks Consensus Estimate is pegged at $5.087 billion.
Non-GAAP operating income is expected in the range of $1.675 billion to $1.725 billion, representing growth of 8%-11%. Non-GAAP earnings per share are projected between $4.30 and $4.40 (an increase of 14-16%). The Zacks Consensus Estimate currently stands at $3.02.
For the first quarter, the company anticipates revenues in the range of $740 million to $760 million, lower than the Zacks Consensus Estimate of $780 million.
It expects non-GAAP operating income to be in the range of $10 million to $20 million. While the company expects to report non-GAAP earnings in the range of 1 cent to 3 cents per share in the first quarter, the Zacks Consensus Estimate stands at a loss of 6 cents.
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