) hit a new 52-week high on Dec 2, eventually closing at $74.23.
The closing share price represents a decent one-year return of
about 23.9% and year-to-date return of about 19.8%. Average
volume of shares traded over the last three months stands at
AUTOMATIC DATA (ADP): Free Stock Analysis
INTUIT INC (INTU): Free Stock Analysis Report
PAYCHEX INC (PAYX): Free Stock Analysis
SANDISK CORP (SNDK): Free Stock Analysis
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Intuit is a leading provider of business and financial management
solutions to small and medium-sized businesses (SMB), consumers,
accounting professionals and financial institutions. The
recent realignment of the company's operations is expected to
yield long-term positive results.
It is worth noting that the share price has been increasing
continuously since the company reported first-quarter results on
Nov 21. Intuit reported adjusted loss per share from continuing
operations of $0.18 per share in the first quarter of fiscal
2014, which was narrower than the Zacks Consensus Estimate of a
loss of $0.20 per share.
Revenues of $622.0 million increased 10.7% on a year-over-year
basis, beating the Zacks Consensus Estimate of $603.0 million.
The year-over-year improvement was mainly due to broad-based
strength across all segments.
The other positive factor for Intuit was the acquisition of
Prestwick Services, LLC, a provider of payroll based billing and
payment solutions. The acquisition is expected to build a
platform that will enable small businesses to simplify the
calculation of workers compensation insurance premiums.
Additionally, the synergies from the acquisition will help Intuit
to gain traction in the SMB segment.
Additionally, the company has also unveiled the latest version of
QuickBooks Online. The new offering provides improved solutions
to manage payroll, inventory, sales and other needs of a small
We are positive on Intuit's growing SMB exposure and believe that
the strategic acquisitions will continue to support the segment.
The higher adoption rate of its cloud-based services and products
is another positive factor. Moreover, the company's accelerated
share buyback program would aid the bottom line.
However, competition from leading payroll solution providers,
Automatic Data Processing
), seasonality of Intuit's tax business and the ongoing
uncertainty in the economy concern us.
Currently, Intuit has a Zacks Rank #3 (Hold).
) is a better-ranked stock in the technology sector with a Zacks
Rank #1 (Strong Buy).