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Intuit (INTU - Free Report) reported third-quarter fiscal 2021 non-GAAP earnings of $6.07 per share, which beat the Zacks Consensus Estimate of $6.04. Moreover, the bottom-line figure surged 35% from the year-ago quarter.
In addition, revenues of $4.17 billion came in line with the consensus mark but climbed 39% year on year.
The year-over-year surges in the top and bottom lines reflect the strong growth in the do-it-yourself category. Solid contribution from TurboTax Live was a positive. Moreover, solid customer growth was also a top-line tailwind.
Segment-wise, Small Business and Self-Employed Group revenues grew 20% year over year to $1.2 billion. This rise was primarily driven by solid growth in customers for QuickBooks Online and a favorable mix-shift. Moreover, approximately $10 million of non-recurring revenues from the Paycheck Protection Program boosted this segment.
Total Online Ecosystem revenues climbed 28% year on year to $715 million. QuickBooks Online Accounting revenues were up 24% year over year. Online Services revenues, which include payroll, payments, time tracking and capital, grew 34% year over year.
Within QuickBooks Online payroll, a mix-shift to Intuit’s full-service offering was a tailwind. Also, within QuickBooks Online payments, continued uptick in the customer base drove revenues.
Total international online revenues increased 38% year over year on a constant-currency basis.
Total Desktop ecosystem revenues grew 9% year on year in the reported quarter.
In the fiscal third quarter, revenues from Consumer Group jumped 34% year on year to $2.4 billion.
Intuit’s non-GAAP operating income increased 43% to $2.2 billion.
Balance Sheet and Cash Flow
As of Apr 30, 2021, Intuit’s cash and investments were $4.1 billion compared with $2.7 billion as of Jan 31.
The company repurchased stocks worth $380 million during the reported quarter. Intuit has $1.8 billion remaining under its authorization.
Additionally, the company announced that its board of directors has approved a quarterly cash dividend of 59 cents per share to be payable on Jul 19, 2021. The newly-approved cash dividend represents a year-over-year increase of 11%.
Outlook
For the fiscal fourth quarter, Intuit expects revenues between 26% and 28% on a year-over-year basis. Adjusted earnings for the quarter are estimated in the range of $1.55-$1.60 per share.
The company raised the outlook for fiscal 2021. It now projects revenues in a band of $9.36-$9.40 billion, up from the previous guided band of $8.810-$8.995 billion, calling for year-over-year growth of 22%, up from the previous guidance of 15-17% growth. Fiscal 2021 adjusted earnings are projected between $9.32 and $9.37 per share, higher than the previous guidance of $8.20-$8.40.
The long-term earnings growth rate for Silicon Motion Technology Corporation, Lam Research and LG Display is currently pegged at 8%, 32.8% and 32.56%, respectively.
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Intuit (INTU) Q3 Earnings Beat Estimates, Revenues Surge Y/Y
Intuit (INTU - Free Report) reported third-quarter fiscal 2021 non-GAAP earnings of $6.07 per share, which beat the Zacks Consensus Estimate of $6.04. Moreover, the bottom-line figure surged 35% from the year-ago quarter.
In addition, revenues of $4.17 billion came in line with the consensus mark but climbed 39% year on year.
The year-over-year surges in the top and bottom lines reflect the strong growth in the do-it-yourself category. Solid contribution from TurboTax Live was a positive. Moreover, solid customer growth was also a top-line tailwind.
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 grew 20% year over year to $1.2 billion. This rise was primarily driven by solid growth in customers for QuickBooks Online and a favorable mix-shift. Moreover, approximately $10 million of non-recurring revenues from the Paycheck Protection Program boosted this segment.
Total Online Ecosystem revenues climbed 28% year on year to $715 million. QuickBooks Online Accounting revenues were up 24% year over year. Online Services revenues, which include payroll, payments, time tracking and capital, grew 34% year over year.
Within QuickBooks Online payroll, a mix-shift to Intuit’s full-service offering was a tailwind. Also, within QuickBooks Online payments, continued uptick in the customer base drove revenues.
Total international online revenues increased 38% year over year on a constant-currency basis.
Total Desktop ecosystem revenues grew 9% year on year in the reported quarter.
In the fiscal third quarter, revenues from Consumer Group jumped 34% year on year to $2.4 billion.
Intuit’s non-GAAP operating income increased 43% to $2.2 billion.
Balance Sheet and Cash Flow
As of Apr 30, 2021, Intuit’s cash and investments were $4.1 billion compared with $2.7 billion as of Jan 31.
The company repurchased stocks worth $380 million during the reported quarter. Intuit has $1.8 billion remaining under its authorization.
Additionally, the company announced that its board of directors has approved a quarterly cash dividend of 59 cents per share to be payable on Jul 19, 2021. The newly-approved cash dividend represents a year-over-year increase of 11%.
Outlook
For the fiscal fourth quarter, Intuit expects revenues between 26% and 28% on a year-over-year basis. Adjusted earnings for the quarter are estimated in the range of $1.55-$1.60 per share.
The company raised the outlook for fiscal 2021. It now projects revenues in a band of $9.36-$9.40 billion, up from the previous guided band of $8.810-$8.995 billion, calling for year-over-year growth of 22%, up from the previous guidance of 15-17% growth. Fiscal 2021 adjusted earnings are projected between $9.32 and $9.37 per share, higher than the previous guidance of $8.20-$8.40.
Zacks Rank & Stocks to Consider
Intuit currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader technology sector include Silicon Motion Technology Corporation (SIMO - Free Report) , Lam Research Corporation (LRCX - Free Report) and LG Display Co., Ltd. (LPL - Free Report) , all sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term earnings growth rate for Silicon Motion Technology Corporation, Lam Research and LG Display is currently pegged at 8%, 32.8% and 32.56%, respectively.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>