Intuit's Q4 Reviewed By Credit Suisse

Intuit Inc. INTU reported healthy Q4 results, ahead of expectations, while announcing slightly disappointing guidance. Credit Suisse’s Michael Nemeroff maintained a Neutral rating on the company, with a price target of $100.

Results Healthy

Intuit reported its FQ4 total revenue at $754.0 million, representing 8.3 percent y/y growth and beating the Street's $732.7 million. QBO subscribers of 1,513K, including 116K of net adds, was marginally higher than the CS estimate of 1,489K and Street expectation of 1,500K. The company reported its EPS at $0.08, significantly ahead of the Street’s $(0.01).

“INTU reported a good F4Q, in our view, with headline results including total revenue, OpM%, EPS, and cash flows above consensus and above the high-end of guidance,” analyst Nemeroff wrote.

Guidance Little Light

Management guided to F2017 revenue of $5,000-$5,100 million, representing 6.5-8.6 percent y/y growth. The mid-point of the guidance came in slightly below the Street's prior estimate of $5,084 million. The company guided to EPS of $4.30-$4.40 for the year, the mid-point of which was above the Street’s prior estimate of $4.33.

Nemeroff commented, “We continue to believe INTU's Consumer Tax franchise is best-of-breed and will continue to dominate its market. However, the Small Business segment faces intensifying competition, which we believe could weigh on subscriber unit economics / earnings power over time as mgmt. is forced to forego near-term monetization while chasing market share and subscriber growth, particularly internationally.”

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