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. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew.
Gross margins grew, operating margins increased, net margins were steady.
Intuit tallied revenue of $2.18 billion. The 15 analysts polled by S&P Capital IQ expected sales of $2.18 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $1.95 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 $2.97. The 19 earnings estimates compiled by S&P Capital IQ averaged $2.93 per share. Non-GAAP EPS of $2.97 for Q3 were 18% higher than the prior-year quarter's $2.51 per share. GAAP EPS of $2.71 for Q3 were 12% higher than the prior-year quarter's $2.42 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 91.6%, 180 basis points better than the prior-year quarter. Operating margin was 59.4%, 250 basis points better than the prior-year quarter. Net margin was 37.7%, much about the same as the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $727.3 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $4.51 billion. The average EPS estimate is $3.32.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 595 members out of 629 rating the stock outperform, and 34 members rating it underperform. Among 197 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 192 give Intuit a green thumbs-up, and five 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 $63.80.
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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. The Motley Fool recommends Intuit. The Motley Fool owns shares of Intuit. 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.