The 10-second takeaway
For the quarter ended Oct. 31 (Q1), Intuit beat slightly on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP loss per share dropped.
Margins grew across the board.
Intuit logged revenue of $647.0 million. The 15 analysts polled by S&P Capital IQ anticipated revenue of $639.2 million on the same basis. GAAP reported sales were 8.9% higher than the prior-year quarter's $594.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.03. The 18 earnings estimates compiled by S&P Capital IQ anticipated -$0.06 per share. GAAP EPS were -$0.06 for Q1 versus -$0.21 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 72.6%, 90 basis points better than the prior-year quarter. Operating margin was -10.7%, 510 basis points better than the prior-year quarter. Net margin was -2.9%, 790 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.10 billion. On the bottom line, the average EPS estimate is $0.58.
Next year's average estimate for revenue is $4.59 billion. The average EPS estimate is $3.35.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 527 members out of 560 rating the stock outperform, and 33 members rating it underperform. Among 194 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 183 give Intuit a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Intuit is outperform, with an average price target of $63.59.
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