Will Intuit (INTU) Disappoint this Earnings Season? - Analyst Blog
2013年11月18日 - 11:00PM
Zacks
Intuit Inc. (INTU) is set to report
first-quarter fiscal 2014 results on Nov 21. Last quarter, it
posted a negative surprise of 22.2%. Let us see how things are
shaping up for this announcement.
Factors This Past Quarter
Intuit reported wider-than-expected loss in the fourth quarter
of 2013 and its revenues lagged the Zacks Consensus Estimate.
However, revenues increased year over year, primarily driven by
strong performance of its business segments, higher costs led to
contraction of margins and the subsequent decline in profits.
We are positive on Intuit’s growing SMB (small & medium
business) exposure and believe that the Demandforce acquisition
will continue to support the segment. The company’s is focusing on
revamping its products with new mobile design. Its TurboTax
solutions help customers to prepare and file online tax returns via
tablet, mobile phone or desktop computers. These new offerings are
expected to increase its customer base going forward.
Additionally, Intuit is moving to additional open platforms with
application programming interfaces that help to solve problems
faster and more efficiently. However, stiff competition from the
leading payroll solution provider, Paychex Inc.
(PAYX), in the SMB arena, seasonality of Intuit’s tax business and
the ongoing uncertainty in the economy concern us.
Earnings Whispers?
Our proven model does not conclusively project Intuit as likely
to beat earnings this quarter. That is because a stock needs to
have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3
for this to happen. That is not the case here as you will see
below.
Negative Zacks ESP: ESP for Intuit is
-10.0%. This is because the Most Accurate Estimate is pegged at a
loss of 22 cents while the Zacks Consensus Estimate stands at a
loss of 20 cents.
Zacks Rank: Intuit’s Zacks Rank #3 (Hold) when
combined with a negative ESP makes surprise prediction
difficult.
We caution against stocks with Zacks Rank #4 and 5 (Sell-rated
stocks) going into an earnings announcement, especially when the
company is witnessing negative estimate revisions momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows that they have the right combination of elements to
post an earnings beat this quarter:
Best Buy Co. Inc. (BBY), with Earnings ESP of
+9.09% and a Zacks Rank #1 (Strong Buy).
TiVo Inc. (TIVO), with Earnings ESP of +16.67%
and a Zacks Rank #2 (Buy).
BEST BUY (BBY): Free Stock Analysis Report
INTUIT INC (INTU): Free Stock Analysis Report
PAYCHEX INC (PAYX): Free Stock Analysis Report
TIVO INC (TIVO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
TiVo (NASDAQ:TIVO)
過去 株価チャート
から 6 2024 まで 7 2024
TiVo (NASDAQ:TIVO)
過去 株価チャート
から 7 2023 まで 7 2024