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Yahoo
4 days ago
- Business
- Yahoo
Finance and HR Software Stocks Q1 Teardown: Intuit (NASDAQ:INTU) Vs The Rest
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let's take a look at how finance and HR software stocks fared in Q1, starting with Intuit (NASDAQ:INTU). Organizations are constantly looking to improve organizational efficiencies, whether it is financial planning, tax management or payroll. Finance and HR software benefit from the SaaS-ification of businesses, large and small, who much prefer the flexibility of cloud-based, web-browser delivered software paid for on a subscription basis than the hassle and expense of purchasing and managing on-premise enterprise software. The 13 finance and HR software stocks we track reported a satisfactory Q1. As a group, revenues beat analysts' consensus estimates by 1.4% while next quarter's revenue guidance was 1.2% below. In light of this news, share prices of the companies have held steady as they are up 2.9% on average since the latest earnings results. Created in 1983 when founder Scott Cook watched his wife struggle to reconcile the family's checkbook, Intuit provides tax and accounting software for small and medium-sized businesses. Intuit reported revenues of $7.75 billion, up 15.1% year on year. This print exceeded analysts' expectations by 2.6%. Overall, it was a very strong quarter for the company with full-year EPS guidance exceeding analysts' expectations and an impressive beat of analysts' EBITDA estimates. Intuit achieved the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 14.4% since reporting and currently trades at $762. Is now the time to buy Intuit? Access our full analysis of the earnings results here, it's free. Originally created to process international tuition payments for universities, Flywire (NASDAQ:FLYW) is a cross border payments processor and software platform focusing on complex, high-value transactions like education, healthcare and B2B payments. Flywire reported revenues of $133.5 million, up 17% year on year, outperforming analysts' expectations by 5%. The business had a very strong quarter with a solid beat of analysts' EBITDA estimates and revenue guidance for next quarter meeting analysts' expectations. Flywire achieved the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 2.3% since reporting. It currently trades at $10.28. Is now the time to buy Flywire? Access our full analysis of the earnings results here, it's free. Holding close ties to American Express, Global Business Travel (NYSE:GBTG) is a comprehensive travel and expense management services provider to corporations worldwide. Global Business Travel reported revenues of $621 million, up 1.8% year on year, falling short of analysts' expectations by 1.9%. It was a disappointing quarter as it posted full-year EBITDA guidance missing analysts' expectations. Global Business Travel delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 10.5% since the results and currently trades at $6.16. Read our full analysis of Global Business Travel's results here. Founded by payroll software veteran Steve Sarowitz in 1997, Paylocity (NASDAQ:PCTY) is a provider of payroll and HR software for small and medium-sized enterprises. Paylocity reported revenues of $454.5 million, up 13.3% year on year. This print beat analysts' expectations by 2.9%. It was a very strong quarter as it also logged a solid beat of analysts' EBITDA estimates. The stock is down 7.8% since reporting and currently trades at $179.09. Read our full, actionable report on Paylocity here, it's free. Started in 2001 by software engineer Therese Tucker, one of the very few women founders who took their companies public, BlackLine (NASDAQ:BL) provides software for organizations to automate accounting and finance tasks. BlackLine reported revenues of $166.9 million, up 6% year on year. This number was in line with analysts' expectations. Overall, it was a very strong quarter as it also recorded EPS guidance for next quarter exceeding analysts' expectations and a solid beat of analysts' EBITDA estimates. The company added 12 customers to reach a total of 4,455. The stock is up 18.6% since reporting and currently trades at $55.33. Read our full, actionable report on BlackLine here, it's free. As a result of the Fed's rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed's 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump's victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Yahoo
22-05-2025
- Business
- Yahoo
Intuit (NASDAQ:INTU) Posts Better-Than-Expected Sales In Q1, Stock Soars
Tax and accounting software provider, Intuit (NASDAQ:INTU) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 15.1% year on year to $7.75 billion. On top of that, next quarter's revenue guidance ($3.74 billion at the midpoint) was surprisingly good and 5.7% above what analysts were expecting. Its non-GAAP profit of $11.65 per share was 6.8% above analysts' consensus estimates. Is now the time to buy Intuit? Find out in our full research report. Revenue: $7.75 billion vs analyst estimates of $7.56 billion (15.1% year-on-year growth, 2.6% beat) Adjusted EPS: $11.65 vs analyst estimates of $10.91 (6.8% beat) Adjusted Operating Income: $4.34 billion vs analyst estimates of $4.09 billion (56% margin, 6.2% beat) Revenue Guidance for Q2 CY2025 is $3.74 billion at the midpoint, above analyst estimates of $3.54 billion Management raised its full-year Adjusted EPS guidance to $20.10 at the midpoint, a 4.3% increase Operating Margin: 48%, up from 46.1% in the same quarter last year Free Cash Flow Margin: 56.2%, up from 26.2% in the previous quarter Billings: $7.61 billion at quarter end, up 13.7% year on year Market Capitalization: $184.5 billion Created in 1983 when founder Scott Cook watched his wife struggle to reconcile the family's checkbook, Intuit provides tax and accounting software for small and medium-sized businesses. Reviewing a company's long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. Over the last three years, Intuit grew its sales at a 12.2% annual rate. Although this growth is acceptable on an absolute basis, it fell short of our standards for the software sector, which enjoys a number of secular tailwinds. Luckily, there are other things to like about Intuit. This quarter, Intuit reported year-on-year revenue growth of 15.1%, and its $7.75 billion of revenue exceeded Wall Street's estimates by 2.6%. Company management is currently guiding for a 17.5% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 10.4% over the next 12 months, a slight deceleration versus the last three years. We still think its growth trajectory is satisfactory given its scale and implies the market is baking in success for its products and services. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Billings is a non-GAAP metric that is often called 'cash revenue' because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract. Intuit's billings punched in at $7.61 billion in Q1, and over the last four quarters, its growth was solid as it averaged 15.5% year-on-year increases. This performance aligned with its total sales growth, indicating robust customer demand. The cash collected from customers also enhances liquidity and provides a solid foundation for future investments and growth. The customer acquisition cost (CAC) payback period measures the months a company needs to recoup the money spent on acquiring a new customer. This metric helps assess how quickly a business can break even on its sales and marketing investments. Intuit is extremely efficient at acquiring new customers, and its CAC payback period checked in at 12.3 months this quarter. The company's rapid recovery of its customer acquisition costs indicates it has a highly differentiated product offering and a strong brand reputation due to its scale. These dynamics give Intuit more resources to pursue new product initiatives while maintaining the flexibility to increase its sales and marketing investments. It was great to see Intuit raise its full-year EPS guidance and provide revenue guidance for next quarter that exceeded Wall Street's estimates. We were also glad its revenue, EPS, and adjusting operating income topped analysts' expectations. Zooming out, we think this was a good "beat-and-raise" print with some key areas of upside. The stock traded up 6.8% to $711 immediately after reporting. Intuit put up rock-solid earnings, but one quarter doesn't necessarily make the stock a buy. Let's see if this is a good investment. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-04-2025
- Business
- Yahoo
3 Market-Beating Stocks Worth Investigating
The best-performing stocks typically have robust sales growth, increasing margins, and rising returns on capital, and those that can maintain this trifecta year in and year out often become the legends of the investing world. Long story short, there is a near-perfect correlation between consistent earnings growth and huge winners. On that note, here are three market-beating stocks with room for further growth. Five-Year Return: +131% Created in 1983 when founder Scott Cook watched his wife struggle to reconcile the family's checkbook, Intuit provides tax and accounting software for small and medium-sized businesses. Why Are We Fans of INTU? Winning new contracts that can potentially increase in value as its billings growth has averaged 15% over the last year Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale Robust free cash flow margin of 32.8% gives it many options for capital deployment At $568.28 per share, Intuit trades at 8.1x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it's free. Five-Year Return: +83.7% Having been at the forefront of developing the standards for cellular connectivity for over four decades, Qualcomm (NASDAQ:QCOM) is a leading innovator and a fabless manufacturer of wireless technology chips used in smartphones, autos and internet of things appliances. Why Do We Like QCOM? Disciplined cost controls and effective management resulted in a strong two-year operating margin of 24.6% Strong free cash flow margin of 29.4% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures Qualcomm's stock price of $134.74 implies a valuation ratio of 11.2x forward price-to-earnings. Is now a good time to buy? See for yourself in our full research report, it's free. Five-Year Return: +700% Playing on the secular trend of healthier living, Sprouts Farmers Market (NASDAQ:SFM) is a grocery store chain emphasizing natural and organic products. Why Do We Love SFM? Aggressive strategy of rolling out new stores to gobble up whitespace is prudent given its same-store sales growth Locations open for at least a year are seeing increased demand as same-store sales have averaged 5.5% growth over the past two years Free cash flow margin grew by 1.9 percentage points over the last year, giving the company more chips to play with Sprouts is trading at $153.86 per share, or 34.2x forward price-to-earnings. Is now the right time to buy? Find out in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free.
Yahoo
04-04-2025
- Business
- Yahoo
Finance and HR Software Stocks Q4 Recap: Benchmarking Intuit (NASDAQ:INTU)
As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at finance and HR software stocks, starting with Intuit (NASDAQ:INTU). Organizations are constantly looking to improve organizational efficiencies, whether it is financial planning, tax management or payroll. Finance and HR software benefit from the SaaS-ification of businesses, large and small, who much prefer the flexibility of cloud-based, web-browser delivered software paid for on a subscription basis than the hassle and expense of purchasing and managing on-premise enterprise software. The 14 finance and HR software stocks we track reported a mixed Q4. As a group, revenues beat analysts' consensus estimates by 1.1% while next quarter's revenue guidance was 1.5% below. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 14.6% since the latest earnings results. Created in 1983 when founder Scott Cook watched his wife struggle to reconcile the family's checkbook, Intuit provides tax and accounting software for small and medium-sized businesses. Intuit reported revenues of $3.96 billion, up 17% year on year. This print exceeded analysts' expectations by 3.5%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts' EBITDA estimates but EPS guidance for next quarter missing analysts' expectations significantly. "We are making great progress fueling the financial success of consumers, businesses, and accountants with our AI-driven expert platform," said Sasan Goodarzi, Intuit's chief executive officer. Intuit scored the biggest analyst estimates beat of the whole group. The stock is up 7.2% since reporting and currently trades at $595.50. Is now the time to buy Intuit? Access our full analysis of the earnings results here, it's free. Founded in 1990 in Cincinnati, Ohio, Paycor (NASDAQ: PYCR) provides software for small businesses to manage their payroll and HR needs in one place. Paycor reported revenues of $180.4 million, up 13.1% year on year, outperforming analysts' expectations by 1.9%. The business had a very strong quarter with a solid beat of analysts' EBITDA estimates and an impressive beat of analysts' billings estimates. However, the results were likely priced into the stock as it's traded sideways since reporting. Shares currently sit at $22.26. Is now the time to buy Paycor? Access our full analysis of the earnings results here, it's free. Originally created to process international tuition payments for universities, Flywire (NASDAQ:FLYW) is a cross border payments processor and software platform focusing on complex, high-value transactions like education, healthcare and B2B payments. Flywire reported revenues of $117.6 million, up 22.4% year on year, falling short of analysts' expectations by 4.9%. It was a softer quarter as it posted revenue guidance for next quarter slightly missing analysts' expectations. Flywire delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. As expected, the stock is down 47.3% since the results and currently trades at $9.29. Read our full analysis of Flywire's results here. Holding close ties to American Express, Global Business Travel (NYSE:GBTG) is a comprehensive travel and expense management services provider to corporations worldwide. Global Business Travel reported revenues of $591 million, up 7.7% year on year. This print beat analysts' expectations by 0.5%. Aside from that, it was a mixed quarter as it also logged full-year EBITDA guidance slightly topping analysts' expectations. The stock is down 19.7% since reporting and currently trades at $6.92. Read our full, actionable report on Global Business Travel here, it's free. Founded by payroll software veteran Steve Sarowitz in 1997, Paylocity (NASDAQ:PCTY) is a provider of payroll and HR software for small and medium-sized enterprises. Paylocity reported revenues of $377 million, up 15.5% year on year. This result topped analysts' expectations by 2.7%. It was a strong quarter as it also recorded a solid beat of analysts' EBITDA estimates. The stock is down 14.2% since reporting and currently trades at $181.76. Read our full, actionable report on Paylocity here, it's free. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here. Sign in to access your portfolio
Yahoo
25-02-2025
- Business
- Yahoo
Intuit (NASDAQ:INTU) Exceeds Q4 Expectations, Quarterly Revenue Guidance Slightly Exceeds Expectations
Tax and accounting software provider, Intuit (NASDAQ:INTU) announced better-than-expected revenue in Q4 CY2024, with sales up 17% year on year to $3.96 billion. Guidance for next quarter's revenue was better than expected at $7.58 billion at the midpoint, 1% above analysts' estimates. Its GAAP profit of $1.67 per share was 98.1% above analysts' consensus estimates. Is now the time to buy Intuit? Find out in our full research report. Revenue: $3.96 billion vs analyst estimates of $3.83 billion (17% year-on-year growth, 3.5% beat) EPS (GAAP): $1.67 vs analyst estimates of $0.84 (98.1% beat) Adjusted Operating Income: $1.26 billion vs analyst estimates of $999.6 million (31.8% margin, 26.1% beat) The company reconfirmed its revenue guidance for the full year of $18.25 billion at the midpoint Operating Margin: 15%, up from 10.9% in the same quarter last year Free Cash Flow Margin: 26.2%, up from 10% in the previous quarter Billings: $4.10 billion at quarter end, up 16.8% year on year Market Capitalization: $158.8 billion "We are making great progress fueling the financial success of consumers, businesses, and accountants with our AI-driven expert platform," said Sasan Goodarzi, Intuit's chief executive officer. Created in 1983 when founder Scott Cook watched his wife struggle to reconcile the family's checkbook, Intuit provides tax and accounting software for small and medium-sized businesses. The demand for easy to use, integrated cloud based finance software that integrates tax and accounting operations continues to rise in tandem with the difficulty workers find trying to use existing accounting tools like spreadsheets given the growing volume of finance data littered across a multitude of enterprise applications. A related demand driver is the secular increase of e-commerce and rising adoption of modern point of sales and payments platforms which easily integrate with backend financial software. Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last three years, Intuit grew its sales at a 14.6% annual rate. Although this growth is acceptable on an absolute basis, it fell short of our standards for the software sector, which enjoys a number of secular tailwinds. Luckily, there are other things to like about Intuit. This quarter, Intuit reported year-on-year revenue growth of 17%, and its $3.96 billion of revenue exceeded Wall Street's estimates by 3.5%. Company management is currently guiding for a 12.4% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 11.9% over the next 12 months, a slight deceleration versus the last three years. We still think its growth trajectory is satisfactory given its scale and suggests the market is baking in success for its products and services. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Billings is a non-GAAP metric that is often called 'cash revenue' because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract. Intuit's billings punched in at $4.10 billion in Q4, and over the last four quarters, its growth was solid as it averaged 15% year-on-year increases. This performance aligned with its total sales growth, indicating robust customer demand. The cash collected from customers also enhances liquidity and provides a solid foundation for future investments and growth. The customer acquisition cost (CAC) payback period represents the months required to recover the cost of acquiring a new customer. Essentially, it's the break-even point for sales and marketing investments. A shorter CAC payback period is ideal, as it implies better returns on investment and business scalability. Intuit is extremely efficient at acquiring new customers, and its CAC payback period checked in at 12.2 months this quarter. The company's rapid recovery of its customer acquisition costs indicates it has a highly differentiated product offering and a strong brand reputation due to its scale. These dynamics give Intuit more resources to pursue new product initiatives while maintaining the flexibility to increase its sales and marketing investments. We enjoyed seeing Intuit beat analysts' billings expectations this quarter. We were also happy its revenue outperformed Wall Street's estimates. On the other hand, its full-year revenue guidance was in line. Overall, this quarter had some key positives. The stock traded up 2.9% to $571.20 immediately following the results. Intuit put up rock-solid earnings, but one quarter doesn't necessarily make the stock a buy. Let's see if this is a good investment. When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
