Business and financial management solutions provider Intuit Inc. (INTU), Thursday reported a wider first quarter loss, hurt by higher operating loss and expenses, however, better than what analysts expected. Bolstered by Employee Management Solutions' Payroll service and the Financial Institutions segment, revenues rose from last year, comfortably beating estimates. Looking ahead, Intuit maintained its full year 2010 forecast, while indicating second quarter earnings to come in below analysts estimates.
For the first quarter, net loss of Mountain View, California-based Intuit widened to $68 million or $0.21 per share from $52 million or $0.16 per share in the same quarter a year ago.
Non-GAAP net loss for the quarter was $32 million or $0.10 per share, compared to a loss of $28 million or $0.09 per share in the prior-year quarter.
On average, 17 analysts polled by Thomson Reuters expected a loss of $0.16 per share for the quarter. Analysts' estimate typically excludes one-time items.
Non GAAP results excludes amortization of intangible assets of $22 million, acquisition related charges of $10 million, share-based compensation expenses of $27 million and several other items.
Total net revenue for the quarter increased 2% to $493 million from $481 million in the same quarter a year ago, beating Street estimates of $487.69 million.
Sequentially, in the fourth quarter, Intuit Inc. (INTU) recorded a loss of $70.7 million or $0.22 per share, compared to a loss of $61.9 million or $0.19 per share in the prior year period, as revenue remained nearly flat but costs and expenses rose. Revenue was $476 million, compared to $478.1 million in the previous year period.
Amongst others in the industry, tax services provider H&R Block Inc. (HRB) posted a wider net loss for the first quarter, hit by charges related to Southwest franchise acquisition and other expenses. Net loss was $133.6 million or $0.40 per share and revenues were $275.5 million.
For the quarter under review, revenues of Intuit from product decreased to $206 million from $220 million, while that from services and other grew to $287 million from $261 million recorded in the same quarter a year ago.
Revenue growth in core businesses was led by the Employee Management Solutions' Payroll service at 9%, and the Financial Institutions segment at 7%. Revenue from financial management solutions were down 7%, while payment solutions were up 4% and accounting professionals rose 3%
Operating loss for the quarter widened to $99 million from $76 million in the year-ago quarter. The year ago first quarter included an unusual $17 million benefit from compensation related items.
Total costs and expenses increased to $592 million from $557 million in the comparable quarter a year ago. Interest expenses increased to $16 million from $12 million in the prior-year quarter.
During the quarter, Intuit repurchased $300 million of its shares, while the board approved a new repurchase program of $600 million.
Looking ahead to full year 2010, Intuit reaffirmed its full-year guidance, inclusive of the Mint transaction, and has also provided guidance for the second quarter ending January 31.
For fiscal 2010, Intuit said it continues to see revenues in the range of $3.3 billion to $3.43 billion, a growth of 4% to 8%. The Street currently expects revenues of $3.38 billion for the year. Previously, Intuit expected a reduction in its full-year 2010 non-GAAP earnings per share by 2 cents following the close of the Mint transaction. For the second quarter, Intuit expects earnings in the range of $0.15 to $0.18 per share and non-GAAP earnings in the range of $0.29 to $0.32 per share. Revenues expectation were in the range of $800 million to $835 million or growth of 1% to 6%. Analysts currently expect earnings of $0.37 per share on revenues of $832.99 million for the quarter. On October 26, 2009, brokerage Barclays Capital initiated an 'Overweight' rating on company shares, with a mean target of $34.13.
INTU closed Thursday's regular trading at $30.27, down $0.07 or 0.23%, on a volume of 4.23 million shares. In after-hours, the stock further dropped $0.27 or 0.89%, to trade at $30.00. In the last 52-week period, the stock traded in the range of $20.18 to $31.29, with a three-month average volume of 3.91 million shares.
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