Earnings Preview: Intuit
Intuit (INTU) is expected to report Q4 earnings Thursday after market close, with a conference call scheduled for 4:30 pm ET.
Guidance
The consensus estimate is loss (8c) for EPS and $470.02M for revenue, according to First Call.
Analyst Views
Because Intuit typically posts an operating loss for the July quarter, most analysts are focused on the company's guidance for its 2009 fiscal year. After posting Q3 results that reflected strong seasonal sales of its TurboTax software and sales growth for its QuickBooks software, in June, Intuit said it would cut 7% of its work force as part of a restructuring to focus on its "Connected Services" strategy. Intuit said it expects to take a charge of 4c per share related to the restructuring in Q4. Intuit expects to launch the Connected Services program this fall. During the quarter, Intuit rolled out several new products, including an online payroll program that integrates with QuickBooks, and Quicken Beam, a service that works on cell phones and mobile devices to give consumers access to their bank accounts.
Intuit expects to report a loss of 18c to 20c for Q4, or a loss of 7c to 9c adjusting for one-time items. UBS expects to see results reflect "an aggressive share buyback in the quarter" that could lift results above Wall Street's forecasts, but they kept a "Neutral" rating on the stock because of concerns about how the economic slowdown will effect sales in coming months. Soleil Securities is hoping the company will provide more details on its "Connected Services" efforts, and expects guidance for double-digit revenue growth and mid-teens profit growth. The firm noted Intuit has historically felt little impact during economic downturns. Looking forward, Wedbush said that with consensus set at 9% growth for FY09 and management consistently communicating double-digit long-term organic growth expectations, they believe there is potential for guidance at-or-above consensus on the August conference call. Consensus for FY09 is $1.86 on $3.34B in revenues.
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