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, 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 »
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
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
Nov. 19, 2015, 5:35 PM
Nov. 19, 2015, 4:02 PM
- Intuit (NASDAQ:INTU): FQ1 EPS of $0.09 beats by $0.13.
- Revenue of $713M (+16.5% Y/Y) beats by $42.63M.
- Shares +5%.
Sep. 17, 2015, 12:03 PM
- Intuit (NASDAQ:INTU) has used its 2015 investor day to reiterate FQ1 guidance for revenue of $660M-$680M and EPS of -$0.03 to -$0.04, and FY16 (ends July '16) guidance for revenue of $4.525B-$4.6B (+8%-10% Y/Y) and EPS of $3.40-$3.45. The forecasts were originally provided on Aug. 20.
- The tax/accounting software giant has established FY17 EPS guidance of $4.00-$4.50, below a $4.61 consensus. It expects to end FY17 with 2M-2.2M QuickBooks Online subs, up from 1.075M at the end of FY15 and representing 40%+ annual growth from FY15 to FY17.
- Investor day webcast, slides (.pdf)
Aug. 21, 2015, 10:00 AM
- Intuit's FQ4 is often a time of "strategic introspection," says UBS's Brent Thill reiterating his Buy rating and cutting the price target by $3 to $117, but this year had a few extra moving pieces thanks to the company now being in year one of an aggressive transition to Cloud/subs.
- "As seen in Adobe's transition, it can take a few tries to get the playbook right. We believe Intuit (INTU -11.4%) is still on track long-term, and the tighter playbook should improve the success rate."
- First Analysis downgrades to Underweight.
- Previously: Intuit divesting Demandforce/QuickBase/Quicken, hiking dividend; shares -3.8% (Aug. 20)
- Previously: Intuit beats by $0.07, misses on revenue (Aug. 20)
Aug. 20, 2015, 5:39 PM
Aug. 20, 2015, 4:59 PM
- Intuit (NASDAQ:INTU) uses its FQ4 report to announce it's divesting its Demandforce cloud marketing/customer contact software unit, QuickBase custom business app unit, and Quicken personal finance/money management software unit.
- The moves are declared to "align with [Intuit's] two strategic goals: to be the operating system behind small business success, and to do the nation's taxes in the U.S. and Canada.." They're expected to respectively cut FY16 (ends July '16) revenue and EPS by $250M and $0.10.
- With the aforementioned businesses treated as discontinued ops, Intuit is guiding for FQ1 revenue of $660M-$680M and EPS of -$0.03 to -$0.04, and FY16 revenue of of $4.525B-$4.6B and EPS of $3.40-$3.45. Revenue for continuing ops is expected to rise 8%-10% in FY16, and EPS 31%-33%.
- 110K QuickBooks Online subs were added in FQ4, bringing the paid base to 1.075M. U.S. TurboTax units rose 7%, with TurboTax Online units rising 11%.
- Intuit is hiking its quarterly dividend by 20% to $0.30/share. That spells a 1.2% yield at current levels. Its next dividend is payable on Oct. 19.
- Shares have fallen to $99.00 after hours.
- FQ4 results, PR
Aug. 19, 2015, 2:49 PM
- Deutsche's Nandan Amladi has upgraded Intuit (INTU +0.6%) to Buy ahead of tomorrow's FQ4 report, and hiked his target by $20 to $120.
- Amladi: "While recent quarters have focused on the [QuickBooks Online] transition, we believe investor interest has now moved to how much upside INTU can generate over the next two years. We estimate INTU can overachieve the 2m subs target in Fiscal 2017 by over 10%, with up to $0.25 in EPS upside at the current growth momentum. A bit less competition from Xero recently and TAM expansion from INTU's early entry into the 'sharing economy' have boosted our confidence."
- In May, Intuit forecast it would end FY15 (ended in July) with 1M-1.025M QuickBooks Online subs, up from prior guidance of 975K-1M. Shares are within $3 of a high of $109.21, hit the day after Intuit posted an FQ3 beat.
May 21, 2015, 5:41 PM
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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