Upcoming AWS Coverage on CDK Global Post-Earnings Results
LONDON, UK / ACCESSWIRE / November 29, 2016 / Active Wall St. announces its post-earnings coverage on Intuit Inc. (NASDAQ: INTU). The company reported its first quarter fiscal 2017 (Q1 FY17) earnings on November 18, 2016. The maker of TurboTax and QuickBooks outperformed top- and bottom-line expectations. The company also raised its earnings guidance. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of Intuit's competitors within the Application Software space, CDK Global, Inc. (NASDAQ: CDK), announced its first quarter fiscal 2017 financial results on November 02, 2016. AWS will be initiating a research report on CDK Global in the coming days.
Today, AWS is promoting its earnings coverage on INTU; touching on CDK. Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=INTU
http://www.activewallst.com/registration-3/?symbol=CDK
Earnings Reviewed
For the three months ended on October 31st, 2016, Intuit posted net loss of $30 million, or $0.12 per share, compared to a loss of $31 million, or $0.11 per share in the year ago period. On an adjusted basis, the company reported earnings of $0.6 per share, down from $0.9 per share in Q1 FY16. During the reported quarter, the company's revenue rose to $778 million from $713 million in the year earlier quarter. Intuit had earlier provided Q1 FY17 guidance for adjusted earnings of $0.1 to $0.3 per share on revenue of $740 million to $760 million. The result also outperformed analysts' expectations of adjusted earnings of $0.3 per share on revenue of $756.1 million.
Subscriber Gain
During Q1 FY17, Intuit's QuickBooks Online subscriber growth remained strong, as the company exceeded its guidance for the quarter reaching 1.638 million subscribers, up 41% on a y-o-y basis. The company reported that QuickBooks Online subscribers outside the US grew 50% to 323,000 subscribers, led by growth in the U.K., Australia, and Canada. Subscriber growth in the U.K. accelerated to 87% on a y-o-y basis. The company noted that QuickBooks Self-Employed was also contributing to the acceleration, with approximately 110,000 of company's QuickBooks Online subscribers using QuickBooks Self-Employed. This is compared to 85,000 in Q4 FY16 and 35,000 in Q1 FY16. Intuit announced that it has now launched QuickBooks Self-Employed in the UK and in Australia, as well.
For Q1 FY17, Intuit's total small business revenue grew 11%, while small business online ecosystem revenue grew 26%, driven by online customer acquisition. Intuit's QuickBooks desktop reported exceptionally strong growth for desktop units, up 23%, as unusually high renewals from existing desktop customers were driven by operating system upgrades. The company's Consumer Tax revenue for Q1 FY17 was $60 million, and ProConnect revenue was $112 million.
Balance Sheet
Intuit ended Q1 FY17 with approximately $600 million in cash and investments on its balance sheet. During Q1 FY17, the company repurchased 1.8 million shares for $192 million, with $2.2 billion remaining on its authorization. Intuit announced that it received board approval for a $0.34 per share dividend for Q2 FY17, payable on January 18, 2017.
Earnings Outlook
Intuit announced guidance for Q2 FY17, ending on January 31st, 2016. The company expects revenue in the range of $1.045 billion to $1.065 billion, with growth of 13% to 15%. Intuit is projecting GAAP operating income of $60 million to $70 million during the upcoming quarter. The company is expecting to report GAAP diluted earnings per share of $0.12 to $0.15 and Non-GAAP diluted earnings per share of $0.33 to $0.36. Intuit is also targeting to end Q2 FY17 with QuickBooks Online subscribers of approximately 1.77 million
Intuit raised its FY17 earnings guidance due to the early adoption of the accounting standard update. The company is forecasting to generate revenue of $5 billion to $5.1 billion, with growth of 7% to 9%. The company is expecting GAAP diluted earnings per share of $3.47 to $3.57 for FY17 versus $3.69 in FY16, while it expects non-GAAP diluted earnings per share of $4.30 to $4.40 and growth of 14% to 16%. By the end of FY17, Intuit wants to have QuickBooks Online subscribers of 2.0 million to 2.2 million.
Stock Performance
On Monday, the stock closed the trading session at $115.71, slightly down by 0.31% from its previous closing price of $116.07. A total volume of 1.16 million shares have exchanged hands. INTU's stock price advanced 4.79% in the past three months, 9.11% in the last six months, and 16.86% in the previous twelve months. Furthermore, since the start of the year, shares of the company have gained 21.32%. The stock is trading at a PE ratio of 37.35 and has a dividend yield of 1.18%.
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