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Why Is Intuit (INTU) Up 4.6% Since the Last Earnings Report?
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More than a month has gone by since the last earnings report for Intuit Inc. (INTU - Free Report) . Shares have added about 4.6% 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 drivers.
Recent Earnings
Intuit reported stellar fourth-quarter fiscal 2017 results. The company reported non-GAAP income (excluding stock-based compensation, amortization and other one-time items) from continuing operations of 20 cents per share, surpassing the Zacks Consensus Estimate of 16 cents.
Quarter in Detail
This tax-preparation related software maker reported revenues of $842 Million, which came ahead of management’s guided range of $795-$815 million and also surpassed the Zacks Consensus Estimate of $805 million. On a year-over-year basis, revenues were up 11.7% primarily owing to better-than-expected growth in QuickBooks Online and ecosystem along with new and improved products.
Services and Other revenues climbed nearly 15.3% to $529 million while product revenues were up 6.1% to $313 million.
Segment-wise, Small Business Group recorded 14% 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 58% in QuickBooks Online subscribers for the year, bringing the total global count to 2,383,000. QuickBooks Self-Employed subscribers totaled 390,000 during the quarter. Revenues from the Small Business online ecosystem increased 33% on a year-over-year basis, primarily due to online customer acquisition.
Revenues from Consumer Tax were up 9% for the full year. ProConnect professional tax revenues were up 2%.
Coming to operational metrics, Intuit reported non-GAAP gross profit of $664 million, up 12.5% year over year, backed by higher revenues. Gross margin for the quarter came in at 78.9% as compared with 78.2% reported in the year-ago quarter.
The company reported a 5.8% year-over-year increase in non-GAAP operating expenses. However, as a percentage of revenues, non-GAAP operating expenses decreased to 69.6% from 73.5%.
The company posted non-GAAP operating income of $78.million compared with $$36 million in the year-ago quarter. Operating margins expanded 450 bps to 9.3% during the quarter.
Intuit posted non-GAAP net income from continuing operations of approximately $53 million compared with fourth-quarter fiscal 2016 net income of $20 million.
Balance Sheet and Cash Flows
Intuit exited the fiscal fourth quarter with cash and investments of $777 million compared with $1.593 billion in the previous quarter. Long-term debt was $438 million at quarter end as compared with $450 million reported in the previous quarter.
Cash from operational activities during the twelve months ended Jul 31, 2017 was $1.599 billion. During the quarter, the company repurchased more than $360 million shares, with $1.5 billion still remaining under the share repurchase authorization.
The company received an authorization to pay a dividend of 39 cents per share on Oct 18, 2017.
Outlook
Intuit provided first-quarter and fiscal 2018 guidance.
For the fiscal first quarter, the company anticipates revenues in a range of $840-$860 million. Intuit expects fiscal first quarter non-GAAP operating income in the range of $15-$25 million. The company anticipates reporting non-GAAP earnings in the band of 3-5 cents per share.
For fiscal 2018, the company anticipates revenues of $5.640-$5.740 billion, representing an increase of 9% to 11% year over year.
QuickBooks Online subscribers for fiscal 2018 are expected to be in the range of 3.275-3.375 million. Small Business segment is expected to grow in the range of 12-14%. Consumer Tax and ProConnect is anticipated to increase in the range of 7-9% and 0-2%, respectively.
Non-GAAP operating income is now expected in a range of $1.885-$1.935 billion, representing growth of 9-12%. Non-GAAP earnings per share are projected between $4.90 and $5.00, up 11-13%.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been six revisions lower for the current quarter. In the past month, the consensus estimate has shifted down by 53.1% due to these changes.
At this time, the stock has a nice Growth Score of B, though it is lagging a lot on the momentum front with an F. 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for growth based on our styles scores.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of this revision also indicates a downward shift. Notably, 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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Why Is Intuit (INTU) Up 4.6% Since the Last Earnings Report?
More than a month has gone by since the last earnings report for Intuit Inc. (INTU - Free Report) . Shares have added about 4.6% 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 drivers.
Recent Earnings
Intuit reported stellar fourth-quarter fiscal 2017 results. The company reported non-GAAP income (excluding stock-based compensation, amortization and other one-time items) from continuing operations of 20 cents per share, surpassing the Zacks Consensus Estimate of 16 cents.
Quarter in Detail
This tax-preparation related software maker reported revenues of $842 Million, which came ahead of management’s guided range of $795-$815 million and also surpassed the Zacks Consensus Estimate of $805 million. On a year-over-year basis, revenues were up 11.7% primarily owing to better-than-expected growth in QuickBooks Online and ecosystem along with new and improved products.
Services and Other revenues climbed nearly 15.3% to $529 million while product revenues were up 6.1% to $313 million.
Segment-wise, Small Business Group recorded 14% 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 58% in QuickBooks Online subscribers for the year, bringing the total global count to 2,383,000. QuickBooks Self-Employed subscribers totaled 390,000 during the quarter. Revenues from the Small Business online ecosystem increased 33% on a year-over-year basis, primarily due to online customer acquisition.
Revenues from Consumer Tax were up 9% for the full year. ProConnect professional tax revenues were up 2%.
Coming to operational metrics, Intuit reported non-GAAP gross profit of $664 million, up 12.5% year over year, backed by higher revenues. Gross margin for the quarter came in at 78.9% as compared with 78.2% reported in the year-ago quarter.
The company reported a 5.8% year-over-year increase in non-GAAP operating expenses. However, as a percentage of revenues, non-GAAP operating expenses decreased to 69.6% from 73.5%.
The company posted non-GAAP operating income of $78.million compared with $$36 million in the year-ago quarter. Operating margins expanded 450 bps to 9.3% during the quarter.
Intuit posted non-GAAP net income from continuing operations of approximately $53 million compared with fourth-quarter fiscal 2016 net income of $20 million.
Balance Sheet and Cash Flows
Intuit exited the fiscal fourth quarter with cash and investments of $777 million compared with $1.593 billion in the previous quarter. Long-term debt was $438 million at quarter end as compared with $450 million reported in the previous quarter.
Cash from operational activities during the twelve months ended Jul 31, 2017 was $1.599 billion. During the quarter, the company repurchased more than $360 million shares, with $1.5 billion still remaining under the share repurchase authorization.
The company received an authorization to pay a dividend of 39 cents per share on Oct 18, 2017.
Outlook
Intuit provided first-quarter and fiscal 2018 guidance.
For the fiscal first quarter, the company anticipates revenues in a range of $840-$860 million. Intuit expects fiscal first quarter non-GAAP operating income in the range of $15-$25 million. The company anticipates reporting non-GAAP earnings in the band of 3-5 cents per share.
For fiscal 2018, the company anticipates revenues of $5.640-$5.740 billion, representing an increase of 9% to 11% year over year.
QuickBooks Online subscribers for fiscal 2018 are expected to be in the range of 3.275-3.375 million. Small Business segment is expected to grow in the range of 12-14%. Consumer Tax and ProConnect is anticipated to increase in the range of 7-9% and 0-2%, respectively.
Non-GAAP operating income is now expected in a range of $1.885-$1.935 billion, representing growth of 9-12%. Non-GAAP earnings per share are projected between $4.90 and $5.00, up 11-13%.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been six revisions lower for the current quarter. In the past month, the consensus estimate has shifted down by 53.1% due to these changes.
Intuit Inc. Price and Consensus
Intuit Inc. Price and Consensus | Intuit Inc. Quote
VGM Scores
At this time, the stock has a nice Growth Score of B, though it is lagging a lot on the momentum front with an F. 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for growth based on our styles scores.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of this revision also indicates a downward shift. Notably, the stock has a Zacks Rank #2 (Buy). We are looking for an above average return from the stock in the next few months.