What Is Intuit Worth?
Time & Model
Time & Model
Fri, Jun. 24, 10:34 AM
- After a historic Brexit vote, Brean Capital is looking at software stocks in terms of their exposure to the continent and Britain.
- The vote means near-term volatility for currency rates, Yun Kim notes, that could have an outsize impact on companies with stronger exposure outside America.
- Meanwhile, companies like Intuit (INTU -2.8%) have a stronger U.S. element in their revenue mix. “We note that INTU has the least amount of exposure outside of the U.S. (less than 5% of revenue), with MANH [Manhattan Associates, -3.6%] and CRM [Salesforce.com, -2.9%] having less than 10% exposure in the U.K. based on our estimates,” Yun Kim writes.
- Meanwhile, companies like MicroStrategy (MSTR -3.2%) have 15% exposure to the UK and 30% to Europe; Qlik Technologies (QLIK -1.1%) has 10% exposure to the UK and 49% to Europe, and Varonis Systems (VRNS -5.1%) has 18% exposure to the UK and 35% to Europe.
- Holding Buy ratings from Brean: Salesforce.com (price target of $110, implying 38% upside); Intuit (price target of $130, implying 22.7% upside); Manhattan Associates (price target of $75, implying 17.7% upside); and Varonis (price target of $35, implying 43.6% upside).
Thu, Jun. 23, 3:08 PM
- Intuit (NASDAQ:INTU) is up 1.9% today and inching just pennies away from a new 52-week high after Goldman Sachs added the stock to its Conviction Buy list for the Americas.
- A strong tax season (the company's key quarter) brought a beat-and-raise last month, but with that in the rear-view mirror, Goldman's Jesse Hulsing is looking at the company's small-business segment for the second half.
- Hulsing raised the firm's price target to $123 from $117, implying 13.4% upside.
- “After further analysis of retention trends and country-by-country growth expectations, we are more confident in the company’s ability to accelerate net add growth and meet or exceed the mid-point of its 2 million–2.2 million FY17 subscriber guidance,” Hulsing writes.
Tue, May 24, 4:18 PM
- Intuit (NASDAQ:INTU) is up 2.6% following its report of tax-season earnings where it beat on top and bottom lines and boosted its full-year guidance after a "great" season for TurboTax.
- Revenue breakout: Product, $459M (up 3.8%); Service and other, $1.85B (up 9%).
- In segments, Small Business revenue grew 12% and online ecosystem revenue was up 24%. QuickBooks customers grew 16%. In Consumer and Professional Tax, Consumer Tax revenue grew 7% and prompted the company to expect full-year growth of 9%; TurboTax gained share for the third year, bringing total software category share to 65%.
- For Q4, the company sees revenues of $720M-$740M (above consensus for $717.5M) and non-GAAP EPS of break-even (vs. consensus for -$0.01).
- For the full year, it raised estimates across the board: to revenues of $4.66B-$4.68B (growth of 11-12%, and vs. consensus of $4.61B); for operating income (non-GAAP) of $1.49B-$1.51B (growth of 31-32%); and non-GAAP EPS of $3.63-$3.65 (growth of 40-41%, and vs. an expected $3.51).
- Conference call to come at 4:30 p.m. ET.
- Press Release
Tue, May 24, 4:01 PM
Mon, May 23, 5:35 PM
Mon, May 23, 4:28 PM
- Intuit (INTU +1.5%) gained today, and NetSuite (N -0.8%) declined, after Goldman Sachs saw them going in different directions in a launch of enterprise software coverage.
- The firm's analyst Jesse Hulsing also likes Cornerstone OnDemand (CSOD -0.2%) as a winner in that sector (and Intuit has gotten praise at Goldman for election/tax reasons as well): "We see the most opportunity at the lowest end of the market, where we believe market expansion is occurring for INTU. We also rate CSOD a Buy due to improving underlying fundamentals, M&A optionality, and what we view as an attractive valuation."
- NetSuite is a Sell, though, "on organic billings/bookings deceleration and risk that 2017 consensus estimates are too high." Analysts expect the company to record EPS of $0.72 for 2017 along with revenues of $1.228B.
- Now read Not Even A Buyout Justifies Cornerstone OnDemand's Valuation »
Mon, May 23, 12:39 PM
- "Politics is now a topic in every client discussion," say David Kostin and team, and the nature of today's electorate nearly assures a close race, even though prediction markets currently assign a high probability of a Clinton victory.
- When uncertainty rises, consumer staples (NYSEARCA:XLP) typically outperforms, while tech (NYSEARCA:XLK) lags.
- Getting down to names, with protectionism and tax policy two key areas of debate, buy those stocks with high U.S. sales and high effective tax rates, and avoid those with high foreign sales and low tax rates.
- High U.S. sales and high tax rates (buy): Cardinal Health (NYSE:CAH), Fidelity National (NYSE:FIS), Discover (NYSE:DFS), AmerisourceBergen (NYSE:ABC), Schwab (NYSE:SCHW), ADP (NASDAQ:ADP), Chipotle (NYSE:CMG), Reynolds America (NYSE:RAI), Express Scripts (NASDAQ:ESRX), Alliance Data (NYSE:ADS), Fiserv (NASDAQ:FISV), Paychex (NASDAQ:PAYX), Whole Foods (NASDAQ:WFM), Akamai (NASDAQ:AKAM), Intuit (NASDAQ:INTU), Southwest Airlines (NYSE:LUV).
- High foreign sales and low tax rates (avoid): Abbott Labs (NYSE:ABT), Agilent (NYSE:A), Mondelez (NASDAQ:MDLZ), XL Group (NYSE:XL), Waters (NYSE:WAT), Priceline (NASDAQ:PCLN), Transocean (NYSE:RIG), PerkinElmer (NYSE:PKI), Nvidia (NASDAQ:NVDA), Lam Research (NASDAQ:LRCX), Western Digital (NASDAQ:WDC).
Tue, Mar. 8, 1:30 PM
- Less than a week after disclosing P-E firm H.I.G. Capital is buying its Quicken unit, Intuit (INTU +0.7%) states P-E firm WCAS is buying its QuickBase custom business app unit. The deal is expected to close in 1H16.
- Terms are once more undisclosed; Intuit has said it expects to reap ~$500M in combined proceeds from the sale of QuickBase, Quicken, and Demandware, the last of which has been sold to Internet Brands.
- QuickBase had FY15 (ended last July) revenue of more than $70M, and claims over 6K customers (including over half the Fortune 100).
Fri, Mar. 4, 9:30 AM
- P-E firm H.I.G. Capital will be acquiring Intuit's (INTU +0.4%) Quicken personal finance/money management software unit, Quicken chief Eric Dunn discloses. The sale price remains unknown.
- CFO Neil Williams stated last week Intuit (NASDAQ:INTU) expects ~$500M in combined proceeds from the sale of its Demandforce, QuickBase, and Quicken units, and that the transactions will be finished in the April quarter. The sale of Demandforce to Internet Brands was announced in January.
Fri, Feb. 26, 5:33 PM
- "We expect the process to sell Demandforce, QuickBase and Quicken will be completed this fiscal quarter, with total proceeds of approximately $500 million," said Intuit (NASDAQ:INTU) CFO R. Neil Williams during his company's FQ2 call (transcript). Intuit has already announced the sale of Demandforce to Internet Brands for an undisclosed sum.
- The remarks come six months after Intuit announced it plans to divest Demandforce (cloud marketing/contact software), QuickBase (custom business apps), and Quicken (personal finance software), as part of an effect to focus on tax and small business offerings. The company paid $423.5M for Demandforce alone in 2012.
- Though up in after hours trading yesterday, Intuit closed down 4.3% post-earnings, in spite of an FQ2 beat and good FQ3 guidance. The fact Intuit nonetheless didn't change its FY16 sales/EPS guidance could be worrying some investors.
Thu, Feb. 25, 5:53 PM
- Intuit's (NASDAQ:INTU) FQ2 beat is accompanied by FQ3 guidance revenue of $2.21B-$2.26B (+4%-6% Y/Y) and EPS of $3.15-$3.20 vs. a consensus of $2.21B and $3.15. FQ3 is by far Intuit's biggest quarter, thanks to tax season. FY16 (ends July '16) revenue and EPS guidance has been reiterated.
- Nearly 100K QuickBooks Online subs were added in FQ2, bringing the total base to 1.26M (slightly above guidance of 1.24M). Intuit expects to end FQ3 with 1.38M QuickBooks Online subs, and FY16 with 1.475M-1.5M subs. TurboTax online units are up 12% Y/Y in 2016 as of Feb. 20, and total TurboTax units up 9%.
- Boosting FQ2 EPS: $455M was spent to buy back 4.8M shares. GAAP costs/expenses rose 5% Y/Y to $881M.
- Along with the numbers, Intuit has announced the GM of its Small Business Group (Dan Wernikoff) and the GM of its Consumer Tax Group (Sasan Goodarzi) will be swapping roles. The company asserts the move will allow Wernikoff/Goodarzi to "develop deep empathy for each of the companys core customers, as well as an understanding and appreciation of the collective products and technologies in the Intuit ecosystem."
- INTU +3.3% after hours to $103.35.
- Intuit's FQ2 results, earnings release
Thu, Feb. 25, 4:04 PM
Wed, Feb. 24, 5:35 PM
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Fri, Jan. 15, 11:01 AM
- Internet Brands is buying Intuit's (INTU -2.1%) Demandforce unit, which provides cloud marketing and customer contact software for SMBs, for a yet-undisclosed sum.
- Intuit announced in August it's looking to divest Demandforce, as well as its Quicken personal finance/money management software unit and its QuickBase custom business app unit. Demandforce was acquired in 2012 for $423.5M.
- Shares are lower amid a 2.7% Nasdaq drop.
Nov. 20, 2015, 9:17 AM
Nov. 19, 2015, 6:07 PM
- Along with beating FQ1 estimates, Intuit (NASDAQ:INTU) has guided for FQ2 revenue of $880M-$900M (+17%-20% Y/Y) and EPS of $0.17-$0.20, above a consensus of $823.9M and $0.05.
- FY16 (ends July '16) EPS guidance has been hiked by $0.05 to $3.45-$3.50 (consensus is at $3.43). Capex guidance has been hiked by $210M to $490M-$510M to account for the purchase of Intuit's San Diego campus. Full-year revenue and op. income guidance has been reiterated.
- Subscriber/customer growth: QuickBooks Online subs rose by 87K Q/Q to 1.159M (+57% Y/Y), and are expected to total 1.24M at the end of FQ2. Non-U.S. QuickBooks Online subs were up over 2x Y/Y to 215K. QuickBooks Self-Employed subs rose by 10K Q/Q to 35K. Online payroll and payments customers respectively rose 17% and 4% Y/Y, with payments charge volume rising 14%.
- Financials: Boosting EPS: $1.3B was spent on buybacks. Product revenue rose 19% Y/Y to $271M, and service/other revenue 15% to $442M. GAAP costs/expenses rose 3% Y/Y to $742M. Intuit ended FQ1 with $474M in cash/investments, and $850M in debt.
- Shares have jumped to $105.51 after hours. The 52-week high is $109.21.
- Intuit's FQ1 beat, PR
Intuit, Inc. provides business and financial management solutions for small businesses, consumers, and accounting professionals. Its flagship products and services include QuickBooks, TurboTax, Quicken and Mint, assists customers in running a small business, paying bills, filing income tax... More
Industry: Application Software
Country: United States
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