Accounting software firm Intuit, Inc. (INTU) benefited from a good tax season this year, though Zacks senior software industry analyst Larry Orlowski, CFA is keeping his Hold rating on the shares. We checked his report to find out why:
In Q3, total revenue was $1.15 billion, up 21% year over year and above our estimate of $1.11 billion. GAAP EPS [generally accepted accounting principles earnings per share] was $1.04. Including the impact of stock-based compensation, non-GAAP earnings per share was $1.09, five cents above our estimate. The quarter was driven by a solid tax season and QuickBooks.
For fiscal 2007, revenue is expected to range from $2.69 billion to $2.70 billion, above prior guidance of $2.63 billion to $2.68 billion. Non-GAAP EPS is expected to be between $1.38 and $1.40, above prior guidance of $1.33 to $1.37, below prior guidance. Still, we think the stock is close to fair value. Accordingly, we continue to rate the stock a Hold and maintain our target price of $32.
Intuit, Inc. offers small business accounting, personal finance, and tax preparation software for accountants, small businesses, and consumers. In addition to these software packages, Intuit also designs industry-specific accounting and management tools for the construction and real estate industries as well as wholesale distribution organizations.
Read the analyst report on INTU