MOUNTAIN VIEW (dpa-AFX) - Accounting software maker Intuit Inc. (INTU) said Tuesday it slipped to a loss for the fourth quarter, hurt by higher expenses, offsetting a 12 percent growth in revenue. Excluding items, the company reported breakeven earnings per share that matched Wall Street estimates, and its revenue exceeded expectations.
Moving forward, Intuit expects first-quarter loss to be wider than current Street estimates, with revenue indicated to miss expectations. For fiscal year 2014, the company provided strong adjusted earnings outlook, but the revenue guidance was soft.
Additionally, Intuit raised its quarterly dividend by 12 percent to $0.19 per share.
Intuit, which makes software like QuickBooks and TurboTax to file taxes, posted quarterly net loss of $16 million or $0.05 per share, compared with net profit of $4 million or $0.01 per share last year.
Results for the recent quarter included amortization costs of $14 million and stock-based compensation expense of $51 million, among other items.
Excluding items, the company reported adjusted profit of $1 million or breakeven earnings per share for the quarter. On average, 14 analysts polled by Thomson Reuters estimated breakeven earnings per share. Analysts' estimates usually exclude one-time items.
The Mountain View, California-based company's revenue for the quarter grew 12 percent to $634 million from $567 million in the prior year. Analysts estimated revenue of $622.95 million.
Revenue at its Small Business Group rose 13 percent, led by Demandforce, which was acquired in May 2012. The company said its QuickBooks Online subscribers increased 28 percent to 487,000.
Consumer Tax revenue was up 4 percent, and other businesses were up 8 percent.
Nonetheless, results were offset by total expenses that increased to $694 million from $614 million a year ago.
Last month, Intuit agreed to sell its financial services business to private equity firm Thoma Bravo LLC for about $1.025 billion. It also divested its healthcare business.
For the first quarter, Intuit expects expects a loss of $0.11 to $0.10 per share on revenue of $595 million to $605 million. Analysts expect a loss of $0.03 per share on revenue of $619.01 million.
For fiscal 2014, Intuit expects net earnings of $3.11 to $3.19 per share, adjusted earnings of $3.52 to $3.60 per share, and revenue of $4.440 billion to $4.525 billion. Analysts expect earnings of $3.54 per share on revenue of $4.53 billion.
'Looking to fiscal year 2014, our momentum is rising with a robust global strategy, new product launches, and one of the most exciting marketing campaigns we have ever launched in our small business segment,' said CEO Brad Smith.
Intuit repurchased $292 million of its common stock in fiscal 2013, and at the end of the period, had authorization of $1.4 billion towards stock repurchases through August 2014. Intuit's Board approved an additional $2 billion authorization in August.
Intuit shares closed Tuesday at $63.14, down $0.28 or 0.44%, on a volume of 1.8 million shares on the Nasdaq. In after hours, the stock dropped $0.49 or 0.78%.
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