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Intuit Inc. (INTU) reported revenues of $481 million in Q1:FY09, up 8% year-over-year and 0.7% quarter-over-quarter. GAAP EPS was ($0.16) while non-GAAP EPS of ($0.09) was better than the consensus estimate of ($0.12).
Most operating segments recorded growth except the 'Other' business segment, which is being hit by a relatively strong dollar. Going forward, management downgraded its guidance for fiscal 2009. INTU expects to report revenues between $3.26 billion and $3.38 billion, up 6% - 10% from fiscal 2008, but down from the prior revenue guidance of $3.35 billion $3.48 billion.
The company expects to see a decline in merchant transaction volume in the Payroll and Payment segment along with fewer Quickbook users than expected by the management owing to the global slowdown. Based on valuation, we are maintaining our Hold rating on the stock.
The stock currently trades at 11.5x our FY2009 EPS estimate. Our target price of $22 is derived by applying a P/E multiple of 12.2x to our fiscal 2009 EPS estimate. The target multiple is lower than the current median P/E multiple of selected peers based on forward earnings.
Read the full analyst report on INTU
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