Corporate accounting and tax software firm Intuit will be facing some pressure when it releases its fiscal Q1 2016 earnings reports tomorrow (Nov. 19), according to reports this week by The Motley Fool.
The small business service provider saw a 22 percent decline in stocks following its most recent earnings report in August — a drop that signaled weakness not seen since 2000. Intuit anticipated up to $745 million in quarterly sales but missed its mark significantly, hitting just $696 million that quarter.
Only weeks ago, Intuit announced a shakeup that would see it break off several of its products: Quicken, QuickBase and Demandforce. The company is said to be planning a revamped focus on QuickBooks and its SME customer base.
That change, along with weaker figures from earlier reports, means investors and analysts will be eyeing Thursday’s financial stats more closely than usual, reports said.
According to analysts, Intuit will be tasked with hitting revenue of at least $660 million to reach about an 8 percent growth rate compared with FQ1 2015. Reports said Intuit did not adjust its guidance last month during its annual investor day.
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But analysts will be most closely monitoring the performance of QuickBooks Online, the product reports said Intuit will depend upon to pull its performance back in the good graces of investors. Specifically, Intuit will need to offer up some details on its ability to shift SME customers from QuickBooks desktop to QuickBooks in the cloud, as well as its performance in attracting non-U.S. customers.