Intuit faces intense competition in all of its businesses, both domestically and internationally. The company expects that the competitive interest and expertise in many of the markets over the past few years will continue to increase in the near future.
The company’s growth is increasingly dependent on the strength of its business relationships and its ability to continue to develop, manage and maintain new and existing relationships with third-party partners. The company will benefit from the strong brand recognition and large user base of the distribution platforms to attract new customers.
Analysts expect the company’s earnings to drop by 13.80% to $0.25 per share while revenue will jump by 10% to $1.12 billion for the first quarter. The company has surprised investors by beating analysts’ expectations in all of the past four quarters. The majority of the analysts recommended a “hold” rating with an average price target of $280.56.
For the fourth quarter, Intuit posted a wider loss due to higher costs and expenses despite a 15% growth in the top line. The results were driven by the company’s products including QuickBooks Online and TurboTax Live.
For the first quarter, the company expects revenues to rise by 9-11% to $1.105-1.125 billion and adjusted EPS of $0.23-0.25. For the full year, Intuit anticipates revenue of $7.44-7.54 billion and an adjusted EPS of $7.50-7.60.
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