Taking a look, we can see from one of the latest 8-K filings, the first quarter results for fiscal 2017 appear to be well, and QuickBooks online subscribers grew 41 percent worldwide. Reported revenue is up nine percent as $778 million and the company increased QuickBooks self-employed customers to roughly 110,000, which is up from 85,000 last quarter. All in all, it appears the growth is there and for an investor, this is something you want to see as you’re in it for the long haul.
Switching gears to the chart, we can see that price has done nothing but grow over the past several years. This could still be good news because if the company is still growing, then investors should expect the stock price to continue rising. There have been healthy pullbacks along the way, which may indicate profit taking or slightly less then desired news, but nothing has changed the trend.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Intuit income statement, its balance sheet, and the statement of cash flows. Potential Intuit investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Intuit investors may use each financial statement separately, they are all related. The changes in Intuit's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Intuit's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The
future earnings power of Intuit involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Intuit factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Intuit
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Intuit
expected earnings.
Risks
Taking a look at the most recent 10-K we can gather a few high priority risks that investors should be aware of. The company cites that they face intense competitive pressures that may harm their operating results. This type of risk is prevalent in all industry, but being in the small business sector that relies on technology, they have to maintain the latest and greatest to continue their success. To mirror that risk, future revenue growth depends on their ability to adapt to technological changes. Similar to the technology in other companies, if they fail to deploy the latest and most efficient product they can, they will certainly lose people to competitors. Lastly, the company has to be aware of macro market conditions because if something similar to 2008 occurs, it is almost certain that small business will close, causing a potential loss in revenue for the company.
Conclusion
This is a solid company that appears to still be growing, which is a great sign for current and potential investors. You could compare this company to others within the industry to determine if you are getting the best value for your dollar. Also, you can contact an investing professional and they can direct you in the best direction.
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Try AI Portfolio ArchitectNathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Intuit Inc. Please refer to our
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