The 10-second takeaway
For the quarter ended Jan. 31 (Q2), Intuit met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded significantly.
Gross margin shrank, operating margin increased, and net margin expanded.
Intuit tallied revenue of $1.02 billion. The 17 analysts polled by S&P Capital IQ foresaw a top line of $1.01 billion on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $878.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.51. The 20 earnings estimates compiled by S&P Capital IQ forecast $0.45 per share on the same basis. GAAP EPS of $0.39 for Q2 were 70% higher than the prior-year quarter's $0.23 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 79.8%, 30 basis points worse than the prior-year quarter. Operating margin was 18.8%, 620 basis points better than the prior-year quarter. Net margin was 11.6%, 330 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.98 billion. On the bottom line, the average EPS estimate is $2.49.
Next year's average estimate for revenue is $4.24 billion. The average EPS estimate is $2.95.
The stock has a four-star rating (out of five) at Motley Fool CAPS. Among 180 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 172 give Intuit a green thumbs-up, and eight 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 $57.74.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.