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Intuit (INTU) Posts Q4 Earnings Beat, Falls on Weak Forecast

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Intuit Inc. (INTU - Free Report) just released its fourth quarter fiscal 2016 earnings results, posting earnings of a loss of 13 cents and revenue of $754 million. 

Currently, INTU has a Zacks Rank #3 (Hold).INTU was down $4.49, or 3.94%, to $109.35 in after-hours trading shortly after its earnings report was released.                                                            

Beat earnings estimates. The company posted earnings of a loss of 13 cents per share, topping the Zacks Consensus Estimate of a loss of 23 cents per share. This number excludes three cents from non-recurring items.

Beat revenue estimates. The company saw revenue figures of $754 million, soaring past our consensus estimate of $724 million and increasing 8.3% year-over-year.

Total Small Business segment revenue increased 10% for the quarter and 9% for the year.

Small business ecosystem revenue grew 25% for the full fiscal year, thakns to online consumer acquisition. QuickBooks self-employed subscribers ended the year at 85,000, much higher than 25,000 a year ago.

“This was a strong year from start to finish,” said Brad Smith, Intuit’s chairman and chief executive officer. “One of our strategic goals is to be the operating system behind small business success, and our small business ecosystem remains vibrant. Total QuickBooks Online subscribers grew to more than 1.5 million, and small business online ecosystem revenue grew 25 percent for the year.”

Looking ahead, Intuit expects Q1 FY17 EPS between one cent to three cents, much lower than analyst estimates of 13 cents a share. Revenue is forecasted in the range of $740 million to $760 million, also missing estimates of $772 million.

Here’s a graph that looks at Intuit’s price, consensus, and EPS surprise:

INTUIT INC Price, Consensus and EPS Surprise

INTUIT INC Price, Consensus and EPS Surprise | INTUIT INC Quote

 

Intuit's mission is to revolutionize how people manage their financial activities. The company's objective is to greatly expand the world of electronic finance. Electronic finance encompasses three types of products and services: desktop software products that operate on customers' personal computers to automate financial tasks; products and services that are delivered via the Internet; and products and services that connect Internet-based services with desktop software to enable customers to integrate their financial activities.

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