INTU ( $31 gap $34) tops estimates, sets stock buyback
By Sergio G. Non ZDII
Intuit reported better-than-expected third-quarter earnings, raised its profit projection for the next quarter, lowered its revenue projection for the year and announced its first share buyback ever.
After market close Tuesday, the provider of financial software for consumers and small businesses reported fiscal third-quarter earnings of $14.3 million, or 7 cents per share. Intuit (Nasdaq: INTU) earned $118.4 million, or 55 cents per share on a pro forma basis that excludes acquisition-related charges, reorganization costs, investment gains and losses, business sales and an accounting change for derivatives.
First Call's survey of 16 analysts predicted a pro forma profit of 53 cents per share for Intuit's third quarter ended April 30.
Shares of Intuit traded at $33.52 in after-hours activity on the Island ECN immediately following the release of quarterly results. Intuit shares fell 47 cents to $31.15 in Tuesday's regular trading ahead of the earnings report.
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The company now expects fiscal 2001 revenue of $1.26 billion. That figure is the low end of the year's sales range that Intuit predicted in March, and is slightly below the analyst consensus expectation of $1.29 billion.
But the year's earnings will grow more than analysts anticipated, if the company is correct. Operating income should grow at least 34 percent from fiscal 2000, Intuit said. First Call consensus called for 28 percent growth in earnings per share this year.
Intuit also sees 2002 operating income rising 25 to 30 percent, with revenue increasing 15 to 20 percent. Analysts were looking for earnings growth of 22 percent and sales growth of 20 percent in 2002.
Third-quarter revenue for Intuit increased 29 percent year-over-year to $425.2 million. First Call consensus forecast third-quarter sales of $435 million. The fiscal third quarter is typically Intuit's strongest part of the year because it includes the U.S. tax-filing season, which boosts sales of Intuit's TurboTax software and related services.
Also Tuesday, Intuit said it would spend up to $500 million to buy back shares over three years. It will be the company's first stock buyback since Intuit went public more than eight years ago.
Intuit's stock has fallen more than 10 percent since Prudential Securities downgraded the stock last week. |
