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Intuit (INTU) Q2 Earnings & Revenues Beat Estimates, Down Y/Y
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Intuit (INTU - Free Report) reported second-quarter fiscal 2021 non-GAAP earnings of 68 cents per share, which beat the Zacks Consensus Estimate of 67 cents. However, the bottom-line figure plunged 41% from the year-ago quarter’s adjusted earnings of $1.16 per share.
In addition, revenues of $1.58 billion outpaced the consensus mark of $1.57 billion but declined 7% year on year.
The year-over-year declines in the top and bottom lines reflect the impact of late tax-season opening. Earlier this month, the maker of TurboTax software stated that the Internal Revenue Service (IRS) will be accepting and processing tax returns from Feb 12 this year compared with the prior year’s Jan 27.
Segment wise, Small Business and Self-Employed Group revenues jumped 11% year over year to $1.08 billion. This rise was primarily driven by solid growth in customers for QuickBooks Online and favorable mix-shift.
Total Online Ecosystem revenues climbed 22% year on year to $644 million. QuickBooks Online Accounting revenues were up 22% year over year to $404 million. Online Services revenues, which includes payroll, payments, time tracking and capital, grew 20% year over year to $240 million.
Within QuickBooks Online payroll, a mix-shift to Intuit’s full-service offering, was a tailwind. Also, within QuickBooks Online payments, continued uptick in customer base drove revenues.
Total Desktop ecosystem revenues declined 2% year on year to $434 million in the reported quarter.
In the fiscal second quarter, revenues from Consumer Group slumped 71% year on year to $147 million.
Intuit’s non-GAAP operating income decreased to $235 million from the $384 million reported in the year-ago quarter. Non-GAAP operating margin declined to 14.9% from the 22.6% witnessed in second-quarter fiscal 2020.
Balance Sheet and Cash Flow
As of Jan 31, 2021, Intuit’s cash and investments were $2.7 billion compared with $5.8 billion as of Oct 31, 2020.
The company repurchased stocks worth $175 million during the reported quarter. Intuit has $2.2 billion remaining on its authorization.
Additionally, Intuit announced that its board of directors has approved a quarterly cash dividend of 59 cents per share to be payable on Apr 19, 2021. The newly-approved cash dividend represents a year-over-year increase of 11%.
Outlook
For the fiscal third quarter, Intuit expects revenues to increase between 53% and 55% on a year-over-year basis. Adjusted earnings for the quarter are estimated in the range of $6.75-$6.85 per share.
The company reiterated the outlook for fiscal 2021. It projects revenues in the band of $8.810-$8.995 billion, calling for year-over-year growth of 15-17%. The fiscal 2021 adjusted earnings are projected between $8.20 per share and $8.40 per share.
Zacks Rank & Stocks to Consider
Intuit currently carries a Zacks Rank #5 (Strong Sell).
The long-term earnings growth rate for Apple, Facebook and Zoom is currently pegged at 11.5%, 19.2% and 25%, respectively.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Intuit (INTU) Q2 Earnings & Revenues Beat Estimates, Down Y/Y
Intuit (INTU - Free Report) reported second-quarter fiscal 2021 non-GAAP earnings of 68 cents per share, which beat the Zacks Consensus Estimate of 67 cents. However, the bottom-line figure plunged 41% from the year-ago quarter’s adjusted earnings of $1.16 per share.
In addition, revenues of $1.58 billion outpaced the consensus mark of $1.57 billion but declined 7% year on year.
The year-over-year declines in the top and bottom lines reflect the impact of late tax-season opening. Earlier this month, the maker of TurboTax software stated that the Internal Revenue Service (IRS) will be accepting and processing tax returns from Feb 12 this year compared with the prior year’s Jan 27.
Intuit Inc. Price, Consensus and EPS Surprise
Intuit Inc. price-consensus-eps-surprise-chart | Intuit Inc. Quote
Quarter in Detail
Segment wise, Small Business and Self-Employed Group revenues jumped 11% year over year to $1.08 billion. This rise was primarily driven by solid growth in customers for QuickBooks Online and favorable mix-shift.
Total Online Ecosystem revenues climbed 22% year on year to $644 million. QuickBooks Online Accounting revenues were up 22% year over year to $404 million. Online Services revenues, which includes payroll, payments, time tracking and capital, grew 20% year over year to $240 million.
Within QuickBooks Online payroll, a mix-shift to Intuit’s full-service offering, was a tailwind. Also, within QuickBooks Online payments, continued uptick in customer base drove revenues.
Total Desktop ecosystem revenues declined 2% year on year to $434 million in the reported quarter.
In the fiscal second quarter, revenues from Consumer Group slumped 71% year on year to $147 million.
Intuit’s non-GAAP operating income decreased to $235 million from the $384 million reported in the year-ago quarter. Non-GAAP operating margin declined to 14.9% from the 22.6% witnessed in second-quarter fiscal 2020.
Balance Sheet and Cash Flow
As of Jan 31, 2021, Intuit’s cash and investments were $2.7 billion compared with $5.8 billion as of Oct 31, 2020.
The company repurchased stocks worth $175 million during the reported quarter. Intuit has $2.2 billion remaining on its authorization.
Additionally, Intuit announced that its board of directors has approved a quarterly cash dividend of 59 cents per share to be payable on Apr 19, 2021. The newly-approved cash dividend represents a year-over-year increase of 11%.
Outlook
For the fiscal third quarter, Intuit expects revenues to increase between 53% and 55% on a year-over-year basis. Adjusted earnings for the quarter are estimated in the range of $6.75-$6.85 per share.
The company reiterated the outlook for fiscal 2021. It projects revenues in the band of $8.810-$8.995 billion, calling for year-over-year growth of 15-17%. The fiscal 2021 adjusted earnings are projected between $8.20 per share and $8.40 per share.
Zacks Rank & Stocks to Consider
Intuit currently carries a Zacks Rank #5 (Strong Sell).
Better-ranked stocks in the broader technology sector include Apple (AAPL - Free Report) , Facebook and Zoom Video Communications (ZM - Free Report) , all carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term earnings growth rate for Apple, Facebook and Zoom is currently pegged at 11.5%, 19.2% and 25%, respectively.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>