Intuit Announces Record Third-Quarter Revenue; Raises Full-Year Revenue and Earnings Guidance:
Intuit Inc. (INTU) today announced its third-quarter 2007 revenue increased 21 percent over the year-ago quarter to $1.15 billion. This marks the first time Intuit revenue has exceeded $1 billion in a quarter.
Intuit posted GAAP (Generally Accepted Accounting Principles) net income of $367 million in the quarter compared to $299 million in the third quarter of 2006. This represents diluted net income per share of $1.04 compared to diluted net income per share of $0.84 in the year-ago quarter. Intuit posted non-GAAP net income of $399 million, or $1.13 per share versus $318 million, or $0.89 per share in the third quarter of 2006.
The results handily beat analyst expectations of $1.08 in EPS on $1.11 billion in sales. Furthermore, the full-year guidance offered was ahead of expectations for $1.36 in EPS on $2.66 billion in sales:
- Revenue - Former guidance: $2.625 billion to $2.675 billion, representing annual growth of 12 percent to 14 percent. New guidance: $2.685 billion to $2.7 billion, representing annual growth of approximately 15 percent.
- GAAP diluted earnings per share - Former guidance: $1.10 to $1.14. New guidance: $1.15 to $1.17.
- Non-GAAP diluted earnings per share - Former guidance: $1.33 to $1.37. New guidance: $1.38 to $1.40. The new guidance represents annual EPS growth of 14 percent to 16 percent.
I tried to get excited about the news, which sent the shares up 10% after market hours. But the thing is, I don’t think the news had anything to do with the rally. As I’ve pointed out time and time again, share returns for Intuit are nearly as predictable as the passage of time. In fact, about the only variable one apparently needs to know is whether it is April (buy) or November (sell). Anything in between should use the signal as a reference point to know whether there may still be a play. It’s enough to send Eugene Fama into fits.
I, on the other hand, am laughing all the way to the bank.
Disclosure: At time of publication author is long Intuit (INTU) call options.
