OUTLOOK
Wall Street is optimistic about the company maintaining the positive momentum, and predicts a 12% annual increase in earnings to $5.41 per share for the third quarter. The estimate for revenues is $3.23 billion, up 11% from last year. It needs to be noted that Intuit’s business is seasonal, which usually reaches a peak in the initial months of the year when taxpayers prepare financial reports.
Wall Street is optimistic about the company maintaining its positive performance and predicts a 12% earnings growth
The forecast falls at the higher end of the management’s guidance for the period. The QuickBooks Online service is estimated to have expanded by a third this time, in terms of both revenue and subscriber count. In the second quarter, adjusted earnings jumped 19% to $1 per share on revenues of $1.5 billion, which is up 12% from to the year-ago quarter.
Related: H&R Block reports Q3 financial results
HEADWINDS
Though the business recovered after a weak start to the tax season this year, the drifting of customers to alternative services amid growing competition is likely to have impacted performance in the to-be-reported quarter.
The market’s bullish
outlook on Intuit, with estimates for double-digit earnings growth in the next
couple of years, shows the high-value stock is poised for further growth. The majority
of the analysts covering the company have assigned buy rating on the stock. The average target price is around $265.
Last week, Intuit’s shares climbed to an all-time high, after gaining steadily since the beginning of the year. Over the past twelve months, the stock moved up 25%.