Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
In April 2019, Intuit Inc. (NASDAQ:INTU) announced its earnings update. Overall, the consensus outlook from analysts appear somewhat bearish, with earnings expected to grow by 12% in the upcoming year against the higher past 5-year average growth rate of 17%. By 2020, we can expect Intuit’s bottom line to reach US$1.4b, a jump from the current trailing-twelve-month of US$1.2b. Below is a brief commentary on the longer term outlook the market has for Intuit. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Can we expect Intuit to keep growing?
Longer term expectations from the 19 analysts covering INTU’s stock is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To get an idea of the overall earnings growth trend for INTU, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
This results in an annual growth rate of 11% based on the most recent earnings level of US$1.2b to the final forecast of US$1.8b by 2022. This leads to an EPS of $8.14 in the final year of projections relative to the current EPS of $4.73. Margins are currently sitting at 20%, which is expected to expand to 23% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Intuit, there are three key aspects you should further research:
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Valuation: What is Intuit worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Intuit is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Intuit? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.