Intuit Shares Up on Strong Guidance
08/22/08 - 02:42 PM EDT
Ivy Lessner
SAN FRANCISCO - Investors shrugged off Intuit's(INTU Quote - Cramer on INTU - Stock Picks) one-time hit to earnings Friday and focused on its fiscal 2009 guidance.
Shares were up $1.21, or 4%, to $31.24 in recent trading as investors assumed the company has put most of its restructuring costs behind it. A $23 million charge for severance and other costs associated with closing facilities quadrupled Intuit's typical net loss for the seasonally slow fourth quarter to $61.9 million. The charge was $1 million higher than expected, CFO Neil Williams said on the conference call. Excluding the charge, the loss of 8 cents a share was in line with guidance and analysts' estimates. During the quarter, the company laid off 7% of its workforce and closed some facilities. Revenue grew 10.5% to $478.2 million during the quarter. Analysts were expecting $470 million, according to Thomson Reuters. Guidance was stronger than expected. For 2009, Intuit said revenue would range between $3.35 and $3.43 billion, and EPS will be $1.86 to $1.90. Analysts were projecting a top line of $3.34 billion and EPS, less items, of $1.86. The company's projections nudged up individual price targets by sell-side analysts Friday. "Our objective is to grow organic revenue double digits supplemented by strategic acquisitions," CEO Brad Smith said on the call. In fiscal 2008, Intuit grew revenue 11% organically and 15% overall, including acquisitions, he added. The mid-fiscal-year acquisitions of Homestead, a developer of Web-site software, and payments-processor Echo added approximately $15 million to revenue during the quarter, and $30 million for the year, Williams said. Echo's revenue falls within Intuit's payroll business.
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