Thursday, October 20, 2022
Zacks Research Daily presents the best research results of our analyst team. Today’s Research Daily features new research reports on 12 major stocks, including Intuit Inc. (INTU), Diageo plc (DEO) and Sony Group Corp. (SONY). These research reports have been selected from around 70 reports published by our analyst team today.
You can do it see all research reports today here >>>
Intuit shares underperformed the Zacks Computer – Software industry over the year (-37.3% vs. -32.2%). The company faces macroeconomic and geopolitical headwinds that could harm small business operations, thereby posing risks for Intuit’s top-line growth. Additionally, higher costs and expenses due to increased investment in marketing and engineering teams will likely continue to impact bottom line results in the near term.
However, Intuit is benefiting from strong momentum in its online revenue ecosystem and solid professional tax revenue. The TurboTax Live offering is also driving growth in the Consumer tax business. Solid momentum in the company’s lending product, QuickBooks Capital, remains positive.
Moreover, the company’s strategy of moving its business to a cloud-based subscription model will help generate stable revenues in the long term. We expect Intuit’s earnings to grow at a CAGR of 14.66% through fiscal 2023-2025.
(You can do it read the full Intuit research report here >>>)
to Diageo shares have underperformed the Zacks Beverages – Alcohol industry over the past year (-17.8% vs. -7.1%). Continued inflationary pressure and currency headwinds are a concern for the company. However, recovery in the on-trade channel, strong consumer demand in the off-trade and market share gains helped Diageo’s fiscal 2022 results.
It witnessed sales, operating margin and earnings growth driven by organic sales growth in all regions. Price/mix derived from a positive mix due to robust growth of super-premium-plus brands, particularly scotch, tequila and Chinese white spirits.
DEO’s margin trends turned favorable in fiscal 2022, thanks to premiumization efforts, recovery in markets, pricing actions and supply productivity savings, which mostly offset cost inflation. It provided a decent outlook for fiscal 2023, with expected net sales growth across North America, Europe and Asia-Pacific.
(You can do it read the full Diageo research report here >>>)
to Sony shares are down -41.7% over the past year versus the Zacks Audio Video Production industry’s decline of -42.3%. Due to weak macro-economic conditions, the company cut its operating profit guidance for fiscal 2022.
Operating income is expected to fall 8% against a previously expected decline of 3.5%. The company expects that the operating margin is likely to be affected by the decrease in revenue in the Game & Network Services operating unit. Fierce competition and high cost of goods sold cause concerns.
However, Sony’s performance derives from continued strength in the Music and Pictures segments. The company remains focused on the premium segment of branded products in the market to maximize growth.
For fiscal 2022, the company now expects sales to increase 16% due to higher sales of the Music, Pictures and E&TS segment. Strategic acquisitions and joint ventures bode well for the long term. The company continues to expect 18-million-unit sales for its PlayStation 5
(You can do it read the full Sony research report here >>>)
Other notable reports we’re featuring today include ServiceNow, Inc. (NOW), The Southern Co. (SO), and Boston Scientific Corp. (BSX).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a renowned expert on consolidated returns. He is frequently quoted in print and electronic media and publishes weekly Income Trends and Earnings Preview reports. If you would like an email notification whenever Sheraz publishes a new article, please click here>>>