Intuit Rises after Reporting Strong Results

Shares of Intuit Inc. (NASDAQ:INTU) are up over 2% in morning trade after the company reported quarterly revenues and profits that exceeded analyst estimates. The company said that during the quarter ended Jan. 31, its net income was $118 million, or 39 cents per share, up from $73 million, or 23 cents per share, during the same period the year before. Adjusted earnings came in at 51 cents per share easily beating analyst estimates of 45 cents per share.

Revenue during the quarter was $1.02 billion, up from $878 million in the prior year period. This exceeded analyst estimates that were calling for $1.01 billion in revenues. The company said revenue from its consumer tax business jumped 44 percent while financial services revenue climbed 9 percent.

Looking forward the company said it expects to earn adjusted net income between $2.47 per share and $2.51 per share for its current quarter in line with analyst estimates of $2.49 per share. It expects full-year 2012 adjusted earnings to come in between $2.90 per share and $2.97 per share also in line with consensus forecasts of $2.92 per share.

“We had a strong second quarter and have built solid momentum through the first half of the fiscal year, with revenue growing double-digits, driven by our core businesses. We are on track to deliver the revenue guidance we set for the full year, and we raised our guidance for fiscal 2012 operating income and EPS,” said Brad Smith, Intuit’s president and chief executive officer.

“We are off to a great start in tax. Early indications are positive and we are pleased with how the business is performing so far. Third-party data and our unit sales through Feb. 18 give us confidence that the software category is growing and that we are executing well.

“Longer term, our strategy remains the same, and our opportunity to grow customers and revenue by converting non-consumption across our businesses has never been stronger as customers continue to shift to digital solutions and mobile devices,” Smith said.

“The shift to online offerings is accelerating across the company,” said Neil Williams, chief financial officer. “That shows up in the financial results we released today and demonstrates that our strategy is working. This secular shift to digital solutions is also good news for customer acquisition and continues to enrich our mix, as connected services generate recurring revenue streams and favorable lifetime value economics for Intuit.”

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.