Financial management solutions provider Intuit Inc. (INTU), Tuesday said its profit for the second quarter surged from a year ago, due mainly on a 16 percent revenue growth. For the first time in the company's history, second-quarter revenues crossed the $1 billion mark.
Intuit said the double digit revenue growth was driven by its core businesses with Small Business Group revenue improving 9 percent. The growth in the Small Business Group was driven by Employee Management Solutions' Online payroll subscribers growth of 22 percent and an 11 percent Payment Solutions growth in merchant customers.
The Financial Management Solutions segment revenue increased 6 percent in the reporting period. The Accounting Professionals segment turned to revenue growth from a slump last year, and the Financial Services segment advanced 9 percent.
Intuit's revenue for the second quarter grew 16 percent to $1.019 billion from the year-ago quarter. Seventeen analysts had a consensus revenue estimate of $1.010 billion for the quarter.
As a result of its second quarter performance, Intuit lifted its full-year operating income and earnings guidance, while backing its full-year revenues to grow 18 to 21 percent.
For the second quarter ended January 31, Intuit's net income rose to $118 million or $0.39 per share from $73 million or $0.23 per share in the year-ago quarter.
Excluding items, adjusted earnings for the quarter were $156 million or $0.51 per share, compared with $101 million or $0.32 per share last year.
On average, 21 analysts polled by Thomson Reuters expected earnings of $0.45 per share for the quarter. Analysts' estimates typically exclude special items.
Operating income for the quarter surged 73 percent to $192 million from the corresponding quarter last year.
For the third quarter, Intuit expects earnings in the range of $2.36 to $2.40 per share, adjusted earnings of $2.47 to $2.51 per share, and revenues of $1.95 billion to $1.99 billion. The prior earnings guidance for the third quarter was $2.34 to $2.39 per share and $2.45 to $2.50 respectively. Analysts currently expect earnings of $2.49 per share for the third quarter on revenues of $1.980 billion.
For the fourth quarter also Intuit reiterated its earnings in the range of $0.02 to $0.04 per share, with adjusted earnings of $0.06 to $0.08 per share.
For the fiscal year ending July 31, the company now expects earnings of $2.43 to $2.50 per share, up from prior range of $2.38 to $2.47. Full-year adjusted earnings are now expected at $2.90 to $2.97, up from $2.85 to $2.94 issued earlier. The Street currently expect earnings of $2.92 per share for the full year.
The company has declared a new quarterly cash dividend of $0.15 per share to be paid on April 18 to shareholders of record as of the close of business on April 10.
INTU closed Tuesday's regular trade at $57.52, up $0.14 or 0.24%, on the Nasdaq. In after-hours, the stock gained $1.73 or 3.01%, to a new 52-week high of $59.25.
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