Intuit Advances on Sales Growth Forecast, Stock-Buyback Plan

Intuit Inc., the biggest provider of tax and personal-finance software, rose the most in nine years on the Nasdaq after its forecast topped estimates and the company announced plans for a $2 billion stock buyback.

Intuit climbed $5.83, or 15 percent, to $44.60 at 4 p.m. New York time in Nasdaq Stock Market trading. That’s the biggest one-day gain since August 2001. The shares have advanced 45 percent this year.

Sales will increase at least 8 percent to $3.74 billion in the next fiscal year, which ends July 31, 2011, the Mountain View, California-based company said yesterday in a statement. Excluding some costs, earnings will rise at least 12 percent to $2.36. Analysts had estimated revenue of $3.72 billion and profit of $2.30 on average, according to a Bloomberg survey.

Intuit is adding Internet features and using acquisitions to offer more online services. The recently purchased Mint personal-finance site boosted its customers to more than 3 million last quarter. The company’s small-business revenue also rose, climbing 16 percent in the period.

“Intuit has been underappreciated,” said Sasa Zorovic, an analyst with Janney Montgomery Scott LLC in Boston. He advises buying the shares, which he said he doesn’t own. “A lot of people think they’re dependent on a small-business turnaround, but all Intuit needs is for customers to renew their subscriptions.”

The board approved the $2 billion share repurchase program to last through the next three years. The previous buyback plan ended on July 31. The company bought $150 million in shares last quarter, bringing its total for the past fiscal year to $900 million.

To contact the reporter on this story: Rochelle Garner in San Francisco at rgarner4@bloomberg.net

• Tweet
• More
  • Business Exchange
  • Buzz up!
  • Digg
• Print
• Email