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Tickers in this Article: INTU
Intuit (Nasdaq:INTU) announced its results for the most recent quarter on August 21, 2012. Intuit provides business and financial management solutions for businesses, consumers, accounting professionals and financial institutions.

Earnings play an important role in measuring the appropriate valuation for a stock. Investors should be cautious if the company's stock price is high but it consistently has low earnings. SEE: 5 Tricks Companies Use During Earnings Season

The Numbers: Intuit posted an EPS above analyst expectations, despite revenues falling short of predictions. The company reported one cent per share versus the loss of 4 cents per share estimate and revenues of $651 million versus the $1.96 billion estimate. EPS rose from a loss of 19 cents per share in the year-ago quarter while revenue climbed 13.6%. Intuit reported a net loss of $45 million during the fourth quarter.

Management Quote: "Fiscal 2012 was another strong year for Intuit, with 10 percent revenue growth and earnings per share growth of 16 percent," said Brad Smith, Intuit's president and chief executive officer. "Our results and our outlook reflect the steady strength of our core businesses and Intuit's resilience in the choppy macroeconomic environment."

Looking Ahead: When earnings estimates stay consistent leading up to earnings season, this usually shows analysts accurately predicted earnings estimates and business is stable. Be cautious though as this may also be a warnings sign that earnings could come at a huge surprise to the upside or downside as analyst did not correctly predict earnings. Steady earnings estimates mean there is not enough change going on with the company to make analysts change their opinions. When earning estimates are steady, investors can look at the revenue trend for a more fundamental indicator. The average estimate for the fiscal year is $2.62 per share, a rise from $2.59 90 days ago.

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