Research Desk Line-up: Splunk Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 12, 2017 / Pro-Trader Daily publishes post-earnings coverage on Intuit Inc. (NASDAQ: INTU) following the Company's release of its financial results for the third quarter fiscal 2017 (Q3 FY17) on May 23, 2017. The Mountain View, California-based Company's revenue and non-GAAP diluted EPS grew 10% and 14%, respectively; outperforming market consensus estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Earnings Reviewed

Intuit's reported revenues of $2.54 billion in Q3 FY17 which came in above the $2.30 billion recorded in Q3 FY16. Revenues for the reported quarter topped consensus market estimates of $2.50 billion.

The maker of TurboTax, QuickBooks, and other accounting software recorded net income of $964 million, or $3.70 per diluted share, in Q3 FY17 compared to $1.03 billion, or $3.94 per diluted share, in the prior-year's comparable quarter. The Company's non-GAAP net income came in at $1.02 billion, or $3.90 per diluted share, in Q3 FY17, up from $893 million, or $3.43 per diluted share, in the previous year's same quarter. Wall Street was expecting the Company to report non-GAAP net income of $3.87 per diluted share.

Operating Metrics

Intuit spent $467 million in Q3 FY17 on selling and marketing compared to $423 million in Q3 FY16. The Company's research and development cost increased during the reported quarter to $246 million from $228 million in Q3 FY16. Moreover, the Company's general and administrative expenses during Q3 FY17 were $146 million versus $149 million in the last year comparable quarter.

In Q3 FY17, the Company posted GAAP operating income from continuing operations of $1.44 billion compared to $1.29 billion in past year's same period. Additionally, non-GAAP operating income from continuing operations for Q3 FY17 rose to $1.52 billion, from the $1.36 billion reported in the previous year's comparable period.

Segment-wise

The Company's Small Business segment's product revenues grew 12% to $192 million in Q3 FY17. Moreover, product revenues product revenue is driven by sales of QuickBooks Desktop software product. The segment's service and other revenues also rose during the reported quarter to $479 million from $408 million in Q3 FY16. The segment's operating income increased to $277 million, or 41% of the segment's revenues in Q3 FY17 from $223 million, or 38% of the segment's revenues in Q3 FY16. Furthermore, QuickBooks online subscriber base surged 59% to over 2.2 million subscribers.

Consumer Tax segment's product revenues was marginally down to $192 million in Q3 FY17 from $195 million in Q3 FY16. Meanwhile, the segment's service and other revenue grew 11% y-o-y to $1.56 billion in Q3 FY17. The segment's operating income also increased to $1.43 billion in Q3 FY17 from $1.29 billion in Q3 FY16. Moreover, the segment's operating margin stood flat at 81% in Q3 FY17.

Cash Matters and Balance Sheet

In the past nine months, net cash provided by operating activities totaled $1.89 billion, compared to $1.74 billion in the year ago corresponding period. As on April 30, 2017, Intuit had cash and cash equivalents balance of $1.35 billion compared to $638 million as on July 31, 2016. Furthermore, the Company has long-term debt amounting to $450 million as on April 30, 2017, versus $488 million as on July 31, 2016.

Dividend

In its earnings press release, Intuit's Board of Directors announced a quarterly cash dividend of $0.34 per share of outstanding common stock payable on July 18, 2017, to stockholders of record at the close of business on July 10, 2017.

During Q3 FY17, the Company bought back $88 million worth shares, with $1.9 billion remaining on its authorization.

Outlook

In its guidance for full year FY17, Intuit expects revenue growth of 9% to 10% which would fall in the range of $5.13 billion to $5.15 billion. Non-GAAP operating income during FY17 is projected to be between $1.71 billion and $1.73 billion, with growth of 10% to 11% y-o-y. Furthermore, FY17 non-GAAP diluted EPS is anticipated to be in the range of $4.38 to $4.40, with growth of 16% y-o-y.

For Q4 FY17, the Company projects revenue to be between $795 million and $815 million, with y-o-y growth of 5% to 8%. Non-GAAP operating income for Q4 FY17 is expected to be in the range of $50 million to $70 million. Non-GAAP diluted EPS is forecasted to be in the range of $0.16 to $0.18.

Stock Performance

On Friday, June 09, 2017, the stock closed the trading session at $140.21, falling 1.75% from its previous closing price of $142.71. A total volume of 1.89 million shares have exchanged hands. Intuit's stock price soared 10.32% in the last one month, 20.24% in the past six months, and 30.40% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have surged 22.34%. The stock is trading at a PE ratio of 40.23 and has a dividend yield of 0.97%. The stock currently has a market cap of $35.80 billion.

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