Morgan Stanley Expects Solid Q3 From Intuit

According to Morgan Stanley, Intuit INTU is expected to report solid Q3 results on May 19, aided by sustained momentum in the SMB segment and stronger-than-expected Consumer Tax. Morgan Stanley said that data points on SMB sales and payrolls have continued to stabilize, and INTU's execution YTD has been strong, which should help drive SMB towards the +12% YoY est. “Tax has the potential to surprise positively as ests. (net ~$60M in rev. rec. delays from Q2 to Q3) look for revs to grow slower than units in Q3, representing a deceleration from Q2, which is likely conservative. We also believe Q3 margin targets are low and that strong results can drive the stock given the recent pullback.” Intuit closed yesterday at $54.30.