The 10-second takeaway
For the quarter ended April 30 (Q3), Intuit met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded.
Gross margins shrank, operating margins dropped, and net margins improved.
Intuit chalked up revenue of $1.95 billion. The 17 analysts polled by S&P Capital IQ expected to see revenue of $1.96 billion on the same basis. GAAP reported sales were 5.2% higher than the prior-year quarter's $1.85 billion.
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 $2.51. The 20 earnings estimates compiled by S&P Capital IQ forecast $2.48 per share. GAAP EPS of $2.42 for Q3 were 10.0% higher than the prior-year quarter's $2.20 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 89.8%, 130 basis points worse than the prior-year quarter. Operating margin was 56.9%, 50 basis points worse than the prior-year quarter. Net margin was 37.7%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $650.7 million. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $4.21 billion. The average EPS estimate is $2.96.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 528 members rating the stock outperform and 31 members rating it underperform. Among 179 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 169 give Intuit a green thumbs-up, and 10 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 $61.78.
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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.