Latest news with #financialsoftware
Globe and Mail
24-05-2025
- Business
- Globe and Mail
Buy the Spike in Intuit (INTU) Stock After Earnings?
Spiking +8% today, Intuit INTU stock made headlines after comfortably exceeding expectations for its fiscal third quarter after-market hours on Thursday. Sitting on gains of +15% year to date, Intuit stock has outperformed the broader market and many of its notable Zacks Computer-Software peers, including Microsoft MSFT and Salesforce CRM. Not too far from its 52-week high of $734 a share, investors are surely wondering if there is more upside in store for the financial software giant's stock, with generative AI starting to enhance Intuit's accounting and tax preparation services. Intuit's Q3 Results Thanks to its AI-driven solutions, Intuit's Q3 sales of $7.75 billion eclipsed estimates of $7.54 billion and spiked from $6.73 billion a year ago. CEO Sasan Goodarzi stated Intuit is becoming a one-stop shop for AI agents and AI-enabled human experts. Notably, Intuit Assist offers a generative AI-powered financial assistant that helps users with tax filing, business insights, and financial decision-making. On the bottom line, Intuit's Q3 EPS of $11.65 rose 18% from $9.88 in the comparative quarter and topped expectations of $10.89 per share by nearly 7%. More intriguing, Intuit has now surpassed the Zacks EPS Consensus for 13 consecutive quarters with an average earnings surprise of 12.15% in its last four quarterly reports. Intuit's Revenue Guidance Serving as a further catalyst to Friday's rally was that Intuit raised its full-year revenue guidance and now expects fiscal 2025 sales to be between $18.72 billion-18.76 billion, up from previous estimates of $18.16 billion-$18.35 billion. This came in above Zacks' estimates of $18.28 billion or 12% growth (Current Year below). Zacks' projections currently call for Intuit's total sales to increase another 12% in FY26 to $20.48 billion. Image Source: Zacks Investment Research Monitoring Intuit's P/E Valuation Following its post-earnings rally, Intuit stock is trading at a 34.5X forward earnings multiple, which is on par with Microsoft but a premium to its industry average of 27.3X, with Salesforce at 25.5X. However, INTU does trade well below its decade-long high of 87.2X forward earnings and offers a 23% discount to its median of 44.9X during this period. Bottom Line For now, Intuit stock lands a Zacks Rank #3 (Hold) following its favorable Q3 report. That said, it wouldn't be surprising if a buy rating is on the way as earnings estimate revisions could trend higher in the coming weeks, considering Intuit's elevated revenue guidance. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.0% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intuit Inc. (INTU): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Salesforce Inc. (CRM): Free Stock Analysis Report
Bloomberg
23-05-2025
- Business
- Bloomberg
Stock Movers: Apple, Intuit, Deckers
On this episode of Stock Movers: - Apple (AAPL) shares are lower as the iPhone maker faces escalating pressure from President Donald Trump to do what many analysts insist would be nearly impossible: move production of its iconic iPhone to the US from overseas. Trump on Friday threatened Apple with a tariff of at least 25% if it doesn't manufacture its flagship product line in the US, his starkest demand yet for the tech giant to commit to more domestic assembly. The warning came days after a Tuesday meeting between the president and Apple Chief Executive Officer Tim Cook at the White House, a US official said. 'I have long ago informed Tim Cook of Apple that I expect their iPhone's that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,' Trump said in a post on Truth Social on Friday. 'If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.' - Intuit (INTU) ripped higher on after the company posted strong revenue growth following the end of the US tax season, suggesting the financial software company is finding success offering users more expensive services. Fiscal third-quarter revenue increased 15% to $7.8 billion, the company said Thursday in a statement. Analysts, on average, estimated $7.6 billion, according to data compiled by Bloomberg. The period that ended April 30 — including tax season — is the most critical for the maker of TurboTax and other finance software. Profit, excluding some items, was $11.65 a share, compared with analysts' average projection of $10.96. - Deckers Outdoor (DECK) shares tumbled as much as 24%, the most intraday since March 2020, after the owner of Hoka running shoes and Ugg boots provided a disappointing fiscal first-quarter forecast. The company also declined to provide full-year guidance due to the current macro uncertainty.
Bloomberg
22-05-2025
- Business
- Bloomberg
Intuit Posts Strong Growth After Launching More Tax Services
Intuit Inc. posted strong revenue growth following the end of the US tax season, suggesting the financial software company is finding success offering users more expensive services. Fiscal third-quarter revenue increased 15% to $7.8 billion, the company said Thursday in a statement. Analysts, on average, estimated $7.6 billion, according to data compiled by Bloomberg. The period that ended April 30 — including tax season — is the most critical for the maker of TurboTax and other finance software. Profit, excluding some items, was $11.65 a share, compared with analysts' average projection of $10.96.
Gulf Business
19-05-2025
- Business
- Gulf Business
Finastra to sell treasury and capital markets unit to Apax Funds
Image: Getty Images/ For illustrative purposes Financial software company Finastra has entered into an agreement to sell its treasury and capital markets (TCM) business unit to an affiliate of private equity advisory firm Apax Partners, the companies said on Monday. The TCM unit, which serves more than 340 financial institutions globally, will be rebranded and operate as a standalone business following the transaction. Finastra said the move would streamline its operations and allow it to reinvest in core areas of its financial services software portfolio. 'This sale marks an important milestone for Finastra that will help further launch our next phase of growth with a focused suite of mission-critical financial services software,' said Finastra CEO Chris Walters. 'It will provide capital to accelerate our strategy and reinvest in our core business.' Finastra TCM offerings TCM's software offerings — including Kondor, Summit, and Opics — support a range of front-to-back office functions in trade lifecycle management, risk, and regulatory compliance. The unit is embedded within the global banking infrastructure and will now look to expand its technological capabilities under Apax ownership. Apax said it sees long-term value in the platform and intends to support the business with investments in product development, marketing, and cloud infrastructure. 'TCM is a robust, mission-critical platform with leading functionality and an impressive customer base,' said Jason Wright, Partner at Apax. 'We see significant potential to invest in technology, talent, and customer relationships to accelerate innovation and growth as a standalone company.' Gabriele Cipparrone, partner at Apax, added: 'With the backing of the Apax Funds, we expect TCM to benefit from accelerated innovation and enhanced operations, delivering even greater value to its clients.' The transaction is expected to close in the first half of 2026, pending customary closing conditions and employee consultations. Financial terms were not disclosed. Finastra counts 45 of the world's 50 largest banks among its clients Apax Funds have a history of investing in software firms, including Paycor HCM, Zellis Group, IBS Software and Azentio, and have completed several corporate carve-outs in the tech sector. Evercore acted as lead financial advisor to Finastra and Vista, with Perella Weinberg Partners also advising Finastra. Deutsche Bank advised Apax. Legal counsel was provided by Kirkland & Ellis for Finastra and Simpson Thacher & Bartlett for Apax. Read:
Zawya
19-05-2025
- Business
- Zawya
Finastra to sell treasury and capital markets division to Apax Funds
Dubai, United Arab Emirates – Finastra, a global provider of financial software applications, and funds advised by Apax Partners LLP ('Apax'), a leading global private equity advisory firm, today announced that they have entered into an agreement under which Finastra intends to sell its Treasury and Capital Markets ('TCM') business unit to an affiliate of Apax. Upon completion of the transaction, TCM will be rebranded and operated as a standalone business. With a client base of over 340 financial institutions, TCM is a trusted enabler of risk management, regulatory compliance, and capital markets operations. Its suite of software products – most notably Kondor, Summit, and Opics – supports front-to-back trade lifecycle management, risk, compliance, and operations. Built on decades of intellectual property and long-standing client relationships, TCM is deeply embedded in the global banking ecosystem. The sale of TCM will streamline Finastra's portfolio and generate capital for reinvestment to enhance the company's position as one of the world's leading software providers to financial services companies. Finastra remains focused on serving its diversified and established customer base in over 135 countries, offering deep domain expertise and best-in-class technology to many of the world's leading financial institutions and corporations. 'This sale marks an important milestone for Finastra that will help further launch our next phase of growth with a focused suite of mission-critical financial services software,' said Chris Walters, CEO at Finastra. 'It will provide capital to accelerate our strategy and reinvest in our core business, while providing our award-winning TCM platform with the backing of an experienced, long-term technology investor to support its continued success moving forward." As an independent company working in partnership with the Apax Funds, TCM will be able to invest further in new product development, marketing and technology infrastructure to meet its customers' evolving needs. The Apax Funds will support TCM in sharpening strategic and operational focus, enhancing customer experience and accelerating technological advancements, including strengthening the company's cloud offering. 'TCM is a robust, mission-critical platform with leading functionality and an impressive customer base,' said Jason Wright, Partner at Apax. 'We see significant potential to invest in technology, talent, and customer relationships to accelerate innovation and growth as a standalone company, drawing on our 25 years of experience scaling global software companies.' Gabriele Cipparrone, Partner at Apax, said: 'We're excited to partner with the TCM team as the business begins a new chapter as an independent organization. With the backing of the Apax Funds, we expect TCM to benefit from accelerated innovation and enhanced operations, delivering even greater value to its clients.' Funds advised by Apax have a long history of investing across the application software industry. Notable investments include Paycor HCM, Zellis Group, ECi Software, OCS / Finwave, Azentio, EcoOnline and IBS Software. The Apax Funds also have extensive experience in supporting corporate carveouts in the software space. The transaction is expected to close in the first half of 2026, subject to customary closing conditions and the completion of information and consultation processes with employee representative bodies, where required. Further terms of the transaction were not disclosed. Evercore served as lead financial advisor to Finastra and Vista Equity Partners and Kirkland & Ellis served as legal advisor. Perella Weinberg Partners also served as a financial advisor to Finastra. Deutsche Bank served as financial advisor to Apax and Simpson Thacher & Bartlett served as legal advisor. About Finastra Finastra is a global provider of financial services software applications across Lending, Payments, Treasury and Capital Markets, and Universal (retail and digital) Banking. Committed to unlocking the potential of people, businesses and communities everywhere, its vision is to accelerate the future of finance through technology and collaboration, and its pioneering approach is why it is trusted by 8,100 financial institutions, including 45 of the world's top 50 banks. For more information, visit About Apax Apax Partners LLP is a leading global private equity advisory firm. For over 50 years, Apax has worked to inspire growth and transform businesses. The firm has raised and advised funds with aggregate commitments of c.$80 billion. Apax Funds invest in companies across three global sectors: Tech, Services, and Internet/Consumer. These funds provide long-term equity financing to build and strengthen world-class companies. For further information, visit Apax is authorized and regulated by the Financial Conduct Authority in the UK. Media Contacts For Finastra: Caroline Duff Global PR Director Dan Gagnier Gagnier Communications Finastra@ For Vista Equity Partners: Brian W. Steel media@ For Apax Partners: Todd Fogarty, Kekst CNC Amanda Boateng, Apax
