(By Balaseshan) Intuit Inc. (NASDAQ:INTU), the maker of tax-preparation software TurboTax, swung to a quarterly profit mainly due to double-digit revenue growth at its small business group on strength in connected services. Results missed Street's expectations, sending its shares down 2.46% in aftermarket.
The Mountain View, California-based company's earnings for the fourth quarter were $4 million or $0.01 per share, compared to a loss of $57 million or $0.19 per share last year. Non-GAAP earnings per share (EPS) rose to $0.03 from $0.02.
The company recorded a $15 million restructuring charge as the company increases its focus on priorities to accelerate growth. This charge reduced GAAP and non-GAAP EPS by 3 cents.
Revenue rose 14% to $651 million, as payments revenue jumped 31% on fee structure changes, higher card transaction volume and strong merchant growth.
Analysts, on average, polled by Thomson Reuters expected the company to earn $0.06 per share on revenue of $653.80 million.
Total Small Business Group revenue grew 19%, led by continued strength in Employee Management Solutions and Payment Solutions. Consumer Tax increased 16% for the quarter, while Accounting Professionals revenue rose 8%.
Looking ahead for the first quarter, Intuit sees non-GAAP loss per share of $0.06 to $0.07 and revenue of $630 million and $640 million, while Street predicts a loss of $0.08 per share on revenue of $652.73 million.
For the full year 2013, the company anticipates non-GAAP EPS of $3.32 to $3.38 and revenue of $4.55 billion to $4.65 billion, while Street analysts predict profit of $3.36 per share on revenue of $4.62 billion.
INTU closed Tuesday's regular session down 0.67% at $58.95. The stock has been trading between $43.41 and $62.33 for the past 52 weeks.