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Intuit (INTU) Up 1.8% Since Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Intuit Inc. (INTU - Free Report) . Shares have added about 1.8% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Intuit reported stellar third-quarter fiscal 2017 results. The company reported adjusted income (including stock-based compensation but excluding amortization and other one-time items) from continuing operations of $3.71 per share, surpassing the Zacks Consensus Estimate of $3.67.
On a GAAP basis, earnings from continuing operations were $3.70 per share compared with the year-ago figure of $3.26.
Quarter in Detail
This tax-preparation related software maker reported revenues of $2.541 billion, which came within management’s guided range of $2.50 billion to $2.55 and surpassed the Zacks Consensus Estimate of $2.486 billion. On a year-over-year basis, revenues were up 10.3% mainly on the back of higher demand emanating from the U.S. tax season and better-than-expected growth in QuickBooks Online.
Services and Other revenues climbed nearly 12.4% to $2.074 million while product revenues were up 1.7% to $467 million.
Segment-wise, Small Business Group recorded 16% year-over-year growth driven mainly by strong customer acquisition. Continued subscriber growth for QuickBooks Online and QuickBooks Self-Employed also acted as a catalyst.
The company recorded an increase of 59% in QuickBooks Online subscribers for the quarter, bringing the total global count to 2,220,000. QuickBooks Self-Employed subscribers totaled 360,000. Revenues from the Small Business online ecosystem increased 30% on a year-over-year basis, primarily due to online customer acquisition.
Revenues from Consumer Tax were up 10% during the quarter and has improved 9% year to date. ProConnect professional tax revenues were roughly $168 million.
Coming to operational metrics, Intuit reported adjusted gross profit of $2.304 billion, up 10.2% year over year, backed by higher revenues. Gross margin was flat on a year-over-year basis and came in at 90.8%.
The company reported a 7.5% year-over-year increase in adjusted operating expenses. However, as a percentage of revenues, adjusted operating expenses contracted 90 bps to 33.8%.
The company posted adjusted operating income of $1.448 billion compared with $$1.294 billion in the year-ago quarter. Operating margins expanded 80 bps to 57% during the quarter.
Intuit posted adjusted net income from continuing operations of approximately $966.7 million compared with third-quarter fiscal 2016 net income of $851.2 million.
Balance Sheet and Cash Flows
Intuit exited fiscal third quarter with cash and investments of $1.593 billion compared with $637 million in the previous quarter. Long-term debt was $450 million at quarter end.
Cash from operational activities during the nine months ended Apr 30, 2017 was $1.889 billion. During the same quarter, the company repurchased $88 million shares, with $1.9 billion remaining under the share repurchase authorization.
The company received an authorization to pay a dividend of $0.34 per share on Jul 18, 2017.
Outlook
Intuit raised its fiscal 2017 guidance and issued projections for the fiscal fourth quarter.
The company now anticipates revenues of $5.13 billion to $5.15 billion in fiscal 2017, up 9% to 10% year over year (previously $5 billion to $5.1 billion).
Non-GAAP operating income is now expected in a range of $1.705 billion to $1.725 billion, representing growth of 10% to 11% (previously $1.675 billion to $1.725 billion). Non-GAAP earnings per share are projected between $4.38 and $4.40, up 16% (previously $4.30 and $4.40 per share).
For the fiscal fourth quarter, the company anticipates revenues in a range of $795 million to $815 million. Intuit expects fiscal fourth quarter non-GAAP operating income in the range of $50 million to $70 million. The company expects to report non-GAAP earnings in the band of $0.16 to $0.18 per share.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two months as none of them issued any earnings estimate revisions.
At this time, the stock has a strong Growth Score of 'A', though it is lagging a lot on the momentum front with a 'C'. Charting a somewhat similar path, the stock was allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for growth investors than momentum investors.
Outlook
The Zacks Consensus Estimate has moved up in the last 30 days. The stock has a Zacks Rank #2 (Buy). We are looking for an above average return from the stock in the next few months.
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Intuit (INTU) Up 1.8% Since Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Intuit Inc. (INTU - Free Report) . Shares have added about 1.8% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Intuit Tops Q3 Earnings & Revenues, Raises FY17 View
Intuit reported stellar third-quarter fiscal 2017 results. The company reported adjusted income (including stock-based compensation but excluding amortization and other one-time items) from continuing operations of $3.71 per share, surpassing the Zacks Consensus Estimate of $3.67.
On a GAAP basis, earnings from continuing operations were $3.70 per share compared with the year-ago figure of $3.26.
Quarter in Detail
This tax-preparation related software maker reported revenues of $2.541 billion, which came within management’s guided range of $2.50 billion to $2.55 and surpassed the Zacks Consensus Estimate of $2.486 billion. On a year-over-year basis, revenues were up 10.3% mainly on the back of higher demand emanating from the U.S. tax season and better-than-expected growth in QuickBooks Online.
Services and Other revenues climbed nearly 12.4% to $2.074 million while product revenues were up 1.7% to $467 million.
Segment-wise, Small Business Group recorded 16% year-over-year growth driven mainly by strong customer acquisition. Continued subscriber growth for QuickBooks Online and QuickBooks Self-Employed also acted as a catalyst.
The company recorded an increase of 59% in QuickBooks Online subscribers for the quarter, bringing the total global count to 2,220,000. QuickBooks Self-Employed subscribers totaled 360,000. Revenues from the Small Business online ecosystem increased 30% on a year-over-year basis, primarily due to online customer acquisition.
Revenues from Consumer Tax were up 10% during the quarter and has improved 9% year to date. ProConnect professional tax revenues were roughly $168 million.
Coming to operational metrics, Intuit reported adjusted gross profit of $2.304 billion, up 10.2% year over year, backed by higher revenues. Gross margin was flat on a year-over-year basis and came in at 90.8%.
The company reported a 7.5% year-over-year increase in adjusted operating expenses. However, as a percentage of revenues, adjusted operating expenses contracted 90 bps to 33.8%.
The company posted adjusted operating income of $1.448 billion compared with $$1.294 billion in the year-ago quarter. Operating margins expanded 80 bps to 57% during the quarter.
Intuit posted adjusted net income from continuing operations of approximately $966.7 million compared with third-quarter fiscal 2016 net income of $851.2 million.
Balance Sheet and Cash Flows
Intuit exited fiscal third quarter with cash and investments of $1.593 billion compared with $637 million in the previous quarter. Long-term debt was $450 million at quarter end.
Cash from operational activities during the nine months ended Apr 30, 2017 was $1.889 billion. During the same quarter, the company repurchased $88 million shares, with $1.9 billion remaining under the share repurchase authorization.
The company received an authorization to pay a dividend of $0.34 per share on Jul 18, 2017.
Outlook
Intuit raised its fiscal 2017 guidance and issued projections for the fiscal fourth quarter.
The company now anticipates revenues of $5.13 billion to $5.15 billion in fiscal 2017, up 9% to 10% year over year (previously $5 billion to $5.1 billion).
Non-GAAP operating income is now expected in a range of $1.705 billion to $1.725 billion, representing growth of 10% to 11% (previously $1.675 billion to $1.725 billion). Non-GAAP earnings per share are projected between $4.38 and $4.40, up 16% (previously $4.30 and $4.40 per share).
For the fiscal fourth quarter, the company anticipates revenues in a range of $795 million to $815 million. Intuit expects fiscal fourth quarter non-GAAP operating income in the range of $50 million to $70 million. The company expects to report non-GAAP earnings in the band of $0.16 to $0.18 per share.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two months as none of them issued any earnings estimate revisions.
Intuit Inc. Price and Consensus
Intuit Inc. Price and Consensus | Intuit Inc. Quote
VGM Scores
At this time, the stock has a strong Growth Score of 'A', though it is lagging a lot on the momentum front with a 'C'. Charting a somewhat similar path, the stock was allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for growth investors than momentum investors.
Outlook
The Zacks Consensus Estimate has moved up in the last 30 days. The stock has a Zacks Rank #2 (Buy). We are looking for an above average return from the stock in the next few months.