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Earnings preview: Quickbooks will continue to drive Intuit results

Intuit, which sells accounting, and tax preparation software for small businesses, will post first-quarter 2019 results on Monday, November 19. Analysts expect the company to post earnings of 11 cents per share, flat from a year earlier. The company, on the other hand, has guided earnings in the range of 9 to 11 cents per share.

intuit earnings preview
Courtesy: Mike Mozart/ Flickr

During the past four quarters, the company has surprised investors with an earnings beat. It may be noted that the first quarter is Intuit’s weakest quarter, as its clients prepare for the tax season.

The company is adopting a new revenue recognition standard from the first quarter and is expected to report a top line of $969.2 million, 9.4% higher than last year. The management has guided first-quarter revenues between $955 million and $975 million.

The results will primarily be driven by the solid performance of its Quickbooks Online. The accounting software’s subscriber base has seen steady growth over the past few quarters and is expected to increase 40% year-over-year in Q1 to 3.558 million.

In 2018, Quickbooks Online subscriber base grew 43%. Look out for management expectation for the subscriber additions in 2019. While a slowdown can be expected, a lot will depend on how much the management is optimistic about the product going forward.

Intuit fourth quarter 2018 earnings

Riding on this strong growth, the Small Business & Self-Employed segment is anticipated to post revenues of $858 million, a growth of 24%. During the fourth quarter, the segment had reported 20% revenue growth.

Meanwhile, the consumer tax segment continues to face stiff competition from rivals including Automatic Data Processing (ADP) and Paycom Software (PAYC). The company is expected to give some updates on how it plans to go ahead with its personal-finance offering TurboTax into the tax season.

Separately, Intuit had earlier announced that its CEO is stepping down in January. The news was announced along with the fourth-quarter results and is by now absorbed by the market. However, upcoming CEO Sasan Goodarzi’s plan of action, if any updates are revealed, is likely to create stock fluctuations.

 

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Earnings Preview: Diversified growth key to JD.com in third quarter

Chinese e-commerce giant JD.com, Inc. (JD) is scheduled to post its third-quarter earnings before the opening bell on Monday, Nov. 19. New business segments, including the JD Mall, is expected to add to the top line.

For the past couple of years, JD.com has been investing in logistics, real estate and technology to bolster its global presence. The company sells electrical appliances, electronics and fast moving consumer goods that make up almost half of its revenue.

JD Mall aims at direct online sales and advertising. Given their first-half results, advertising revenue has really picked up — up 61% from a year ago.

Back in July, JD Finance — the financial arm that JD.com spun off last year — managed to raise $1.96 billion in the an equity offering. This was above the valuation of the company before the rumored IPO. Last year, Alibaba’s (BABA) rival JD.Com agreed to sell JD Finance for $2.1 billion in cash, with an aim to reorganize the unit and challenge the billionaire Jack Ma Yun’s Ant Financial.

JD.com Q2 results miss estimates; stock falls

Last quarter, JD.com (JD) reported a wider net loss of $0.23) per ADS even as revenue surged 32% to $18.5 billion, falling short of estimates.

JD.com has also been partnering with many companies to expand its e-commerce sales. It even shook hands with Google to explore new retail solutions — to provide personalized shopping solutions from anywhere in the world.

Even though JD.com’s primary metrics have been steadily tanking, it seems to be following the path of Amazon (AMZN). Diversification of its business and focus of improving its global footprint could help this giant in the future.

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