This global financial tech platform, and dividend-growth machine, announced quarterly results after the close on Tues, whereby it beat rev and earnings est., but provided mixed fwd guide w/ rev growing at 10-12% (impressive!) vs street est of 12-14%, and also reaffirmed FY’23 EPS guide. It announced its 45th consec qrtrly dividend (annual div has grown 11 years in a row). W/ impressive gross (>82%) and net (>16%) margins, and trading at ~28x fwd non-GAAP earnings, shares remain an attractive buy as its strong moat (high switching costs + network effects) remain firmly intact. We are long the shares in our Income Equity Portfolio w/ no intention of selling anytime soon.
Intuit Quarterly Earnings Update
Intuit (the financial platform behind TurboTax, QuickBooks, MailChimp, CreditKarma and Mint) released earnings on Tuesday after the close, and they were positive. The company beat expectations on revenue and earnings, and also raised forward earnings guidance. This note is a quick review of the latest results.
This Steady Growth Juggernaut is a Gift from the Market
There is a lot to like about the highly-profitable business we review in this report, including its high margins, powerful revenue growth, large total addressable market opportunity, impressive history of dividend growth (10+ years) and its compelling valuation. The company helps consumers and small businesses make short work of their financial responsibilities and challenges. And the shares have absurdly lost nearly 50% of their value since November as they’ve gotten caught up in the recent market-wide high-growth selloff. Yet, yesterday’s earnings announcement makes clear this business is still quite healthy (they again exceeded expectations) and on track to do even better (perhaps dramatically so) in the years ahead.
Powerful Dividend Growth, Attractive Value: This Business is Worth Considering
With the markets down significantly this year, there are attractive babies being thrown out with the bathwater, and this report reviews one such opportunity. Specifically, we review a highly profitable, rapidly expanding, common sense software application company that pays a healthy growing dividend and has a large total addressable market opportunity to keep growing the business for years to come. If you have the psychological wherewithal—this one is worth considering.