Intuit Inc. ($INTU) Earnings (Q4 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 products and services for consumers, small businesses, self-employed, and accounting professionals internationally. 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 Earnings Results:

  • Revenues of $2.4B beating expectations of $2.35B
  • Operating Income of $433M beating expectations of $395M
  • Adjusted EPS of $1.10 beating expectations of $0.98
  • Cash from operations of $339M missing expectations of $475M
  • Guidance for Q1 FY23 missed consensus estimates
  • Guidance for FY23 beat consensus estimates with the exception of EPS
Opinion:
Intuit is currently up a little under 5% after reporting earnings after the closing bell today. The company produced a solid earnings report. They were able to finish out the fiscal year strong and look to carry some momentum into the next year. However, with the guidance provided, it looks like the year may get off to a rough start. However, guidance for the full year was above estimates, which means they will make up the ground at some point. EPS had a solid beat, as well as Operating Income. For revenue breakdown, they were able to beat estimates on everything except Consumer and Product metrics. As far as valuation goes, in Q2, the P/E ratio was 47.50 which is way higher than industry averages of 29.53. The P/S ratio was at 9.30 which is a tiny bit higher than the average of 7.92. The growth looks pretty promising over the next two years. The debt outweighs cash, but the current ratio is in a good position at 1.63. In my opinion, Intuit is definitely a little overvalued at the moment. That doesn't stop me from liking the long-term potential of the company. Intuit is already a very well established company and is continuing to innovate its software. QuickBooks is one of the applications that sticks out, that is now one of the most vital parts of most businesses. I am long Intuit and I think the upside is definitely looking solid.


*Information from Yahoo Finance, CMLVIZ, Motley Fool, CSI Market, Consensus Gurus

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