Intuit Earnings: Lighter Guidance but a Strong Sense of Direction for the Long Term

Intuit closed its fiscal year nicely, with results in line with our expectations. Earnings guidance for the upcoming fiscal year was on the lighter side because of more moderate margin expansion than we expected as the firm doubles down on big bets, although we think this is a worthy cause. These big bets include areas like expanding the small business ecosystem, which we think makes sense, as we think accounting is one of the first entry points for a small business’ tech stack. We believe Intuit’s track record of worthwhile investments in innovation will pay off in the long term. Our fair value estimate for the wide-moat name is $500 per share, which leaves shares fairly valued.