Intuit Inc. ($INTU) Earnings (Q3 FY22)

 Intuit Inc. ($INTU) Earnings and Opinion:


Intuit is a company in the Technology sector and operates in the Software-Application industry. The company provides financial management and compliance services and products for consumers. Intuit was founded in 1983 and is currently headquartered in Mountain View, California. The company was first traded on the stock market in 1993.

Intuit EPS and Revenue (Q3 FY22):

  • EPS of $7.65 beating expectations of $7.58
  • Revenue of $5.63B beating expectations of $5.51B
Intuit Q3 Highlights:
  • Revenue was up 35% Y/Y
  • EPS was up 26% Y/Y
  • Operating Income of $2.9B, up 26% Y/Y
Opinion:
Intuit is trading higher after hours due to the solid earnings report they presented after the market closed today. They had a solid beat in both the EPS and revenue categories. I really like the recent acquisition of Mailchimp, which alone was able to grow the revenue by 6%. They were also able to grow all the key metrics by some pretty large amounts. I liked the guidance that was put-forth by the company. If things hold up and go as planned, they will see revenue growth in the 30% range. This will be huge for growth and also lead to a so called "success" for the business. The thing I really like about Intuit is the acquisitions they have picked up and how much more money that has brought to the business. You have to give a lot of credit to the CFO and CEO for working out these acquisitions. As far as stock performance goes, it is seen that the stock is down 47% in the past 6 months. This has been a really rough patch for the tech stocks and growth stocks that a lot of people gained on in the pandemic. Intuit seems like one of the companies that is solid though and has a successful business model running for them. For valuations, the P/E ratio sits at 46.77 and the P/S ratio sits at 8.90. These are all very expensive valuations, so many fundamental investors would pass up on this company easily. However some other things to consider is the fact that the growth seems to still be pretty high with this company. The debt is really high, especially compared to the cash they have on hand. This may be a big issue, but I think once things get settled, they have the opportunity to eventually recover from this. They also make some quality investments into other companies which can pay off, and may also be why the debt is so high. The last thing is that the return on equity is at a decent level at 17.76%. I want them to continue to grow and work on alleviating some of the debt to be able to take some of the stress off. Other than that, I really like the business model and the subsidiaries they have now. I would sprinkle a little money into this company for some foundation, especially with its stock performance in the past 6. months. It is trading at a much cheaper price, so if you liked it back a couple months ago, you should love it now.

*Information from Intuit, Yahoo Finance, Google, CMLVIZ


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