Goldman: Intuit's Q4 Results 'Leave Some Meat On The Bone' For Buyers And Sellers

Intuit Inc. INTU reported its FQ4 results, with the revenue and EPS ahead of the consensus forecasts.

Goldman Sachs’ Jesse Hulsing maintains a Buy rating on the company, while raising the price target from $123 to $124.

FQ4 Beat

Intuit reported revenue of $754 million for FQ4, with EPS of $0.08, with both metrics beating the consensus expectations.

Small business revenue came in at $603 million, ahead of the estimate, while total Quickbooks Online subscribers stood at 1.513 million, again beating the estimate.

Related Link: Morgan Stanley Sees Intuit Tailwinds Not Carrying Forward

The FQ4 beat “should leave some meat on the bone for both buyers and sellers,” Hulsing stated.

The analyst pointed out that the largest positive were that FQ4 represented another quarter of online ecosystem revenue acceleration, as well as continues strength in the higher-ARPU U.S. Quickbooks Online and desktop products.

FY17 Guidance

“On the more cautious front, implied FY17 OM guide was about 50bps below our model, though we’d note that INTU exceeded the midpoint of FY16 OM guidance by ~100bps,” Hulsing mentioned.

In addition, the company’s international net additions declined 33 percent year-on-year. “The lack of international growth may create some incremental skepticism about the achievability of INTU’s 2.0 million—2.2 million FY17 QBO guidance,” the analyst cautioned.

Hulsing continues to believe improving retention, incremental contribution from France and Brazil, and a rebound in Canada could create a “very realistic” path to meeting or beating the Quickbooks Online guidance.

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