Intuit (INTU) Upgraded To Strong Buy On Customer Growth
Zacks Investment Research | Jun 18, 2017 10:40PM ET
On Jun 17, Intuit Inc. (NASDAQ:INTU) was upgraded to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Earnings estimates for Intuit are on the rise driven by stellar third-quarter fiscal 2017 results reported on May 23 and an upbeat guidance for fiscal 2017. The company reported adjusted income (including stock-based compensation but excluding amortization and other one-time items) from continuing operations of $3.71 per share, surpassing the Zacks Consensus Estimate of $3.67.
The company posted revenues of $2.541 billion, which came within management’s guided range of $2.50–$2.55 billion, outpacing the Zacks Consensus Estimate of $2.486 billion. On a year-over-year basis, revenues were up 10.3% owing to higher demand emanating from the U.S. tax season and better-than-expected growth in QuickBooks Online.
Intuit raised fiscal 2017 guidance and issued encouraging projections for the fourth quarter. The company now anticipates revenues of $5.13 billion to $5.15 billion in fiscal 2017, up 9% to 10% year over year (previously $5 billion to $5.1 billion).
Upward Estimate Revision
Analysts have become increasingly bullish on the stock in the past 30 days with estimates moving upward. The Zacks Consensus Estimate for the fourth quarter is pegged at a loss of 6 cents, which shows an improvement of 2 cents from a loss of 8 cents projected 30 days ago. For fiscal 2017, earnings estimates moved upward to $3.54 per share from $3.44 projected 30 days ago.
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