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Intuit (INTU) Q2 Earnings Miss, Revenues Beat, Stock Down (revised)
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Intuit (INTU - Free Report) stock fell 3% in Thursday’s extended trading session after the financial software maker reported lower-than-expected earnings for the second quarter of fiscal 2022. However, the company’s revenues surpassed the Zacks Consensus Estimate and marked a significant year-over-year improvement.
Intuit reported fiscal second-quarter non-GAAP earnings of $1.55 per share, which missed the Zacks Consensus Estimate of $1.83. However, the bottom line increased a whopping 128% from the year-ago quarter’s earnings of 68 cents per share.
Revenues of $2.67 billion surpassed the consensus mark of $1.66 billion and climbed 70% year over year.
The year-over-year surge in the top and bottom lines reflect strong growth in the do-it-yourself category and solid revenues from the Credit Karma business. The solid contribution from TurboTax Live was an upside. Also, solid customer growth was a top-line driver.
Segment-wise, Small Business and Self-Employed Group revenues grew 47% year over year to $1.58 billion. This rise was driven by the solid growth in customers for QuickBooks Online and a favorable mix-shift.
Total Online Ecosystem revenues climbed 74% year over year to $1.12 billion. QuickBooks Online Accounting revenues were up 35% year over year to $547 million, mainly driven by the mix-shift, higher pricing and customer growth.
Online Services revenues, which include payroll, payments, time tracking and capital, grew 139% year over year to $574 million. This was driven by strong performances at QuickBooks Online payroll and QuickBooks Online payments solutions along with revenues from the newly acquired Mailchimp business.
Within the QuickBooks Online payroll, a mix-shift to INTU’s full-service offering was a tailwind. Also, the continued uptick in the customer base drove revenues. Within payments, an increase in the charge volume per customer and ongoing customer growth drove revenues. Mailchimp contributed $240 million to total Online Services.
Total International online revenues increased 226% year over year on a constant-currency basis and 33% on an organic basis, excluding contributions from Mailchimp.
Total Desktop ecosystem revenues grew 6% year over year during the reported quarter to $460 million.
In the fiscal second quarter, revenues from Consumer Group increased to $411 million from $147 million, mainly driven by the earlier Internal Revenue Service (IRS) opening this year. IRS started accepting income tax returns on Jan 24, 2022.
ProConnect Group professional tax revenues increased to $237 million from $207 million in the year-ago quarter. The increase was mainly driven by the earlier IRS opening.
The Credit Karma business contributed $444 million to Intuit’s second-quarter total revenues, up from $144 million in the year-ago quarter. The robust year-over-year growth reflects high levels of monthly active users and revenues per monthly active user.
Intuit’s non-GAAP operating income increased 160% to $612 million.
Balance Sheet and Cash Flow
As of Jan 31, 2022, Intuit’s cash and investments were $1.4 billion compared with $3.25 billion as of Oct 31, 2021.
Intuit repurchased stocks worth $519 million during the reported quarter. At the end of the second quarter, it had the remaining share-repurchase authorization of $2.5 billion.
Additionally, INTU announced that its board approved a quarterly cash dividend of 68 cents per share payable on Apr 18, 2022. The newly approved cash dividend represents a year-over-year increase of 15%.
Reiterated Fiscal 2022 Guidance
Intuit reaffirmed its fiscal 2022 guidance. The company continues to project revenues in the band of $12.165-$12.30 billion. The guidance range calls for year-over-year growth of 26-28%. Excluding Mailchimp, Intuit expects revenue growth of 18-20%.
The company anticipates non-GAAP operating income between $4.37 billion and $4.43 billion, indicating year-over-year growth of 25-27%.
Intuit forecasts fiscal 2022 non-GAAP earnings per share between $11.48 and $11.64, suggesting a year-over-year increase of 18-20%.
For the fiscal third quarter, INTU expects revenues to increase between 32% and 33% on a year-over-year basis. Adjusted earnings for the quarter are estimated in the range of $7.51-$7.57 per share.
The Zacks Consensus Estimate for Apple’s second-quarter fiscal 2022 earnings has been revised upward by 3.6% to $1.43 per share over the past 30 days. For fiscal 2022, earnings estimates have moved north by 5.9% to $6.15 per share in the past 30 days.
Apple’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 20.3%. AAPL stock has appreciated 34.2% in the trailing 12 months.
The Zacks Consensus Estimate for Axcelis’ first-quarter 2022 earnings has been revised upward by 2 cents to 89 cents per share over the past 30 days. For 2022, earnings estimates have moved north by 10.8% to $3.99 per share in the past 30 days.
Axcelis’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 30.3%. Shares of ACLS have gained 83.8% in the past year.
The Zacks Consensus Estimate for Analog Devices’ second-quarter fiscal 2022 earnings has been revised upward by 7 cents to $2.08 per share over the past seven days. For fiscal 2022, earnings estimates have moved north by 27 cents to $8.32 per share in the past seven days.
Analog Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6%. Shares of ADI have increased 2.6% over the past 12 months.
(NOTE: We are reissuing this article to correct a mistake. The original version, posted Friday, Feb. 25, 2022, should no longer be relied upon.)
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Intuit (INTU) Q2 Earnings Miss, Revenues Beat, Stock Down (revised)
Intuit (INTU - Free Report) stock fell 3% in Thursday’s extended trading session after the financial software maker reported lower-than-expected earnings for the second quarter of fiscal 2022. However, the company’s revenues surpassed the Zacks Consensus Estimate and marked a significant year-over-year improvement.
Intuit reported fiscal second-quarter non-GAAP earnings of $1.55 per share, which missed the Zacks Consensus Estimate of $1.83. However, the bottom line increased a whopping 128% from the year-ago quarter’s earnings of 68 cents per share.
Revenues of $2.67 billion surpassed the consensus mark of $1.66 billion and climbed 70% year over year.
The year-over-year surge in the top and bottom lines reflect strong growth in the do-it-yourself category and solid revenues from the Credit Karma business. The solid contribution from TurboTax Live was an upside. Also, solid customer growth was a top-line driver.
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 47% year over year to $1.58 billion. This rise was driven by the solid growth in customers for QuickBooks Online and a favorable mix-shift.
Total Online Ecosystem revenues climbed 74% year over year to $1.12 billion. QuickBooks Online Accounting revenues were up 35% year over year to $547 million, mainly driven by the mix-shift, higher pricing and customer growth.
Online Services revenues, which include payroll, payments, time tracking and capital, grew 139% year over year to $574 million. This was driven by strong performances at QuickBooks Online payroll and QuickBooks Online payments solutions along with revenues from the newly acquired Mailchimp business.
Within the QuickBooks Online payroll, a mix-shift to INTU’s full-service offering was a tailwind. Also, the continued uptick in the customer base drove revenues. Within payments, an increase in the charge volume per customer and ongoing customer growth drove revenues. Mailchimp contributed $240 million to total Online Services.
Total International online revenues increased 226% year over year on a constant-currency basis and 33% on an organic basis, excluding contributions from Mailchimp.
Total Desktop ecosystem revenues grew 6% year over year during the reported quarter to $460 million.
In the fiscal second quarter, revenues from Consumer Group increased to $411 million from $147 million, mainly driven by the earlier Internal Revenue Service (IRS) opening this year. IRS started accepting income tax returns on Jan 24, 2022.
ProConnect Group professional tax revenues increased to $237 million from $207 million in the year-ago quarter. The increase was mainly driven by the earlier IRS opening.
The Credit Karma business contributed $444 million to Intuit’s second-quarter total revenues, up from $144 million in the year-ago quarter. The robust year-over-year growth reflects high levels of monthly active users and revenues per monthly active user.
Intuit’s non-GAAP operating income increased 160% to $612 million.
Balance Sheet and Cash Flow
As of Jan 31, 2022, Intuit’s cash and investments were $1.4 billion compared with $3.25 billion as of Oct 31, 2021.
Intuit repurchased stocks worth $519 million during the reported quarter. At the end of the second quarter, it had the remaining share-repurchase authorization of $2.5 billion.
Additionally, INTU announced that its board approved a quarterly cash dividend of 68 cents per share payable on Apr 18, 2022. The newly approved cash dividend represents a year-over-year increase of 15%.
Reiterated Fiscal 2022 Guidance
Intuit reaffirmed its fiscal 2022 guidance. The company continues to project revenues in the band of $12.165-$12.30 billion. The guidance range calls for year-over-year growth of 26-28%. Excluding Mailchimp, Intuit expects revenue growth of 18-20%.
The company anticipates non-GAAP operating income between $4.37 billion and $4.43 billion, indicating year-over-year growth of 25-27%.
Intuit forecasts fiscal 2022 non-GAAP earnings per share between $11.48 and $11.64, suggesting a year-over-year increase of 18-20%.
For the fiscal third quarter, INTU expects revenues to increase between 32% and 33% on a year-over-year basis. Adjusted earnings for the quarter are estimated in the range of $7.51-$7.57 per share.
Zacks Rank & Key Picks
Intuit currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader computer and technology sector include the iPhone maker Apple (AAPL - Free Report) , Axcelis Technologies (ACLS - Free Report) and Analog Devices (ADI - Free Report) . While Apple sports a Zacks Rank #1 (Strong Buy), Axcelis and Analog Devices each carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Apple’s second-quarter fiscal 2022 earnings has been revised upward by 3.6% to $1.43 per share over the past 30 days. For fiscal 2022, earnings estimates have moved north by 5.9% to $6.15 per share in the past 30 days.
Apple’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 20.3%. AAPL stock has appreciated 34.2% in the trailing 12 months.
The Zacks Consensus Estimate for Axcelis’ first-quarter 2022 earnings has been revised upward by 2 cents to 89 cents per share over the past 30 days. For 2022, earnings estimates have moved north by 10.8% to $3.99 per share in the past 30 days.
Axcelis’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 30.3%. Shares of ACLS have gained 83.8% in the past year.
The Zacks Consensus Estimate for Analog Devices’ second-quarter fiscal 2022 earnings has been revised upward by 7 cents to $2.08 per share over the past seven days. For fiscal 2022, earnings estimates have moved north by 27 cents to $8.32 per share in the past seven days.
Analog Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6%. Shares of ADI have increased 2.6% over the past 12 months.
(NOTE: We are reissuing this article to correct a mistake. The original version, posted Friday, Feb. 25, 2022, should no longer be relied upon.)