Intuit Inc. (NASDAQ: INTU) stock rebounds on Tuesday after falling to a 2-year low of $187.68 on Monday. The shares have been hurt by the shift in the tax filing deadline by three months due to the rapid spread of the Covid-19 outbreak around the globe. The analysts remained bullish on the stock for the long term.
The Treasury Department and Internal Revenue Service announced that the federal income tax filing due date is automatically extended from April 15 to July 15, 2020. All taxpayers and businesses will have additional time to file and make payments without interest or penalties.
The market has been facing immense pressure from the coronavirus outbreak but the company continues to be well-positioned to handle the current macro-related circumstances. Historically, the company has performed well during economic downturns.
The consumer and small business spending is likely to be negatively impacted by the current adverse macroeconomic conditions. The company’s payments revenue will be hurt by reduced credit and debit card transaction processing volumes due to decreased consumer spending levels.
The delay in taxes will show a marginal reduction in the top line during the third quarter but will be recovered in the fourth quarter. This will drag the stock lower in the near-term but the strong free cash flow margin along with the potential acquisition of Credit Karma could drive sustained growth in the future.
In mid-February, Intuit agreed to buy Credit Karma for $7.1 billion in cash and stock. The deal is seen as a great strategic fit with Intuit could become better equipped to succeed than in the past. The merger offers synergy and will help reinvigorate growth.
For the second quarter, Intuit reported a 26% jump in earnings as growths in Small Business and Self-Employed Group and in Consumer Group drove the top line higher. Strong customer growth, coupled with higher prices and mix-shift, drove a 43% increase in QuickBooks online accounting revenue.
The market analysts were bullish on the stock with the majority recommended a “hold” rating with an average price target of $287.56. The stock is valued near the fair value with a 6% estimated return but the performance outlook is negative in the near-term and long-term. The shares opened higher and are trading in the green territory in the mid-afternoon on Tuesday. However, the stock is below the 50-day moving average of $272.29 and the 200-day moving average of $267.75.
An innovative product portfolio that is capable of outshining the legacy databases has helped MongoDB (NASDAQ: MDB) stay largely unaffected by the market turmoil so far. Of late, the database
Retailer Macy's (NYSE: M) posted mixed results for its first quarter of 2020. While the topline missed the market's estimates, bottom line topped the targets. There were no change in
STZ Earnings: Key quarterly highlights that you need to know from Constellation Brands Q1 financial results
Constellation Brands (NYSE: STZ) today announced its first quarter financial results for the period ended May 31, 2020. First quarter net loss was $177.9 million, or $0.94 per share, compared