Intuit Q3 2021 earnings preview

$Intuit Inc(INTU.US)$ develops and markets business and financial management software solutions for small and medium-sized businesses, financial institutions, consumers, and accounting professionals. The company provides software for small business management and payroll processing, personal finance, and tax preparation and filing.

Consensus is for a gain of 53%, but we believe it may be more than 60%; new business starts in the quarter were far higher than a year earlier, and optimism is also markedly up. 

Small-business hiring had been a concern, yet continued government stimulus and rising vaccine rates should erode the unemployment rate. 

The tax-season start was delayed, but only by a few weeks, meaning Consumer revenue shouldn't take a big hit.

Net income for 3Q, however, may disappoint because Intuit has so many higher-than-average expenses. 

We expect advertising and employment costs to be significantly higher. Credit Karma will also be a drag on income in the quarter. 

- Andrew Silverman, Bloomberg Analyst

Stock Performance

Zscaler Q3 2021 earnings preview

$Zscaler Inc(ZS.US)$ operates as a security software company. The company offers a cloud-based platform that provides web and mobile security, threat protection, cloud application visibility, and networking solutions. 

Zscaler's top-line momentum may continue to be aided by increased demand for cloud-security products in the wake of SolarWinds and Microsoft Exchange Server breaches. 

The company's expansion in net-retention rate may continue to aid billings growth, likely helping it surpass consensus of 41% in its fiscal 3Q. 

While Zscaler's pace of new-customer additions has trailed that of rivals such as CrowdStrike, we believe its expanding product suite could help accelerate displacements of legacy appliance products as enterprises seek to enable direct access to public-cloud applications.

Gross-margin improvement could be limited by competition as larger peers Palo Alto Networks and Fortinet may look to use discounted pricing to drive adoption of their cloud offerings. 

- Mandeep Singh & Matthew Martino, Bloomberg Analysts

Stock Performance

AutoZone Q3 2021 earnings preview

$AutoZone Inc(AZO.US)$ is a specialty retailer of automotive replacement parts and accessories. The company offers an extensive product line for cars, sport utility vehicles, vans, and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products.

AutoZone's outlook for the remainder of 2021 is linked to the resilience of do-it-yourself shoppers, with demand exhibiting great stamina, suggesting that a fourth consecutive double-digit gain in same-store-sales could signal a structural change in consumers' willingness to tackle auto maintenance and repair projects. 

The company derives just 20% of revenue from commercial accounts, insulating against margin drain, though risking a lack of participation as the market profile shifts to surging demand from higher-growth professional installers.

- Kevin P Tynan & Andreas Krohn, Bloomberg Analysts

Stock Performance

Huazhu Group Q1 2021 earnings preview

$Huazhu Group Ltd(HTHT.US)$ operates a hotel operator and franchisor. The Company provides hotel leasing, direct hotel operation, and co-development services. Huazhu Group mainly conducts businesses in China.

Huazhu's 2021 outlook is improving with turnaround signs, we believe. 

China business is seeing a robust revenue per available room recovery in March after official "stay local" policies during the lunar new year. 

We expect the recovery trend to sustain with business trips picking up throughout the year. Secondly, Huazhu plans to accelerate gross openings with less hotel closures, implying gradual improvement in operations at individual hotels too. Thirdly, business in Europe should bottom out with vaccine rollouts.

- Angela Hanlee, Bloomberg Analyst

Stock Performance

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