What to Expect From Intuit’s Upcoming Q4 Earnings?

Intuit raised its full-year guidance after reporting fiscal third-quarter results that exceeded expectations. Despite this, Intuit (NASDAQ:INTU) saw its stock drop by over 6% in pre-market today.

The company reported earnings per share of $9.88 on revenue of $6.74 billion, significantly surpassing analyst estimates of $9.38 EPS on $6.65 billion in revenue.

CEO Sasan Goodarzi highlighted the transformative impact of AI, stating that Intuit's strategy to become a global AI-driven expert platform is delivering significant benefits for customers and strong company-wide results.

For the future, Intuit updated its guidance, expecting adjusted earnings between $16.79 and $16.84, representing about 17% growth, up from the previous forecast of 12% to 14% growth. Revenue is projected to range from $16.16 billion to $16.2 billion, indicating approximately 13% growth, up from the prior guidance of 11% to 12% growth.

Intuit Inc. (NASDAQ:INTU), a prominent player in the financial technology sector, recently reported its earnings for the third quarter of fiscal year 2024. The company, known for its comprehensive suite of products including TurboTax, QuickBooks, and Credit Karma, has consistently demonstrated its ability to exceed market expectations. On May 23, 2024, Intuit announced earnings per share (EPS) of $9.88, surpassing the estimated EPS of $9.38, and reported revenue of $6.74 billion, beating the forecasted revenue of approximately $6.65 billion. This performance underscores Intuit's strong financial health and its successful execution of strategic initiatives.

During the earnings call, as detailed by Seeking Alpha, Intuit's leadership, including CEO Sasan Goodarzi and CFO Sandeep Aujla, discussed the company's financial results and strategic direction. The call was attended by analysts from leading financial institutions, highlighting the significant interest in Intuit's performance. This interest is a testament to Intuit's market position and its potential for future growth. The company's focus on leveraging AI technology has been particularly noteworthy, with Goodarzi emphasizing its transformative impact on Intuit's offerings and its contribution to the company's robust financial outcomes.

Intuit's ability to consistently surpass consensus EPS estimates for the last four quarters is a clear indicator of its operational excellence and market foresight. The company reported a significant improvement in its quarterly earnings, with a 5.78% earnings surprise, and demonstrated revenue growth across its Consumer group, small business, and Small Business and Self-Employed Group. This growth is reflective of Intuit's effective implementation of its AI-driven strategy, which has not only enhanced its product offerings but also delivered substantial value to its customers.

The company's financial metrics further illustrate its strong market position and investor confidence. With a price-to-earnings (P/E) ratio of approximately 60.36 and a price-to-sales (P/S) ratio of about 11.73, Intuit is valued highly by the market, indicative of its premium offerings and expected future growth. The enterprise value to sales (EV/Sales) and enterprise value to operating cash flow (EV/OCF) ratios further highlight the market's optimistic outlook on Intuit's revenue stream and cash flow generation capabilities. Additionally, Intuit's balanced approach to financing, as shown by its debt-to-equity (D/E) ratio of about 0.35, and a healthy current ratio of 1.5, positions the company well for sustainable growth.

In conclusion, Intuit's recent earnings report and the insights shared during its earnings call reflect the company's strong financial performance and strategic direction. The interest from analysts and the company's focus on AI technology are indicative of Intuit's potential for continued success. With robust financial metrics and a clear strategic vision, Intuit is well-positioned to maintain its leadership in the financial technology sector and deliver value to its customers and investors alike.

Intuit Inc. (NASDAQ:INTU), a leading provider of financial management software for consumers, small businesses, and accountants, is gearing up to release its fiscal third-quarter 2024 earnings report on Thursday, May 23, 2024, after the market closes. The company, known for its flagship products, TurboTax and QuickBooks, plays a pivotal role in the financial software sector, competing with other tech giants in providing innovative financial solutions. Wall Street has set its sights on earnings per share (EPS) of 9.34, with revenue estimates for the quarter hovering around $6.65 billion.

The anticipation surrounding Intuit's earnings report is high, with expectations of showcasing the company's robust performance. Analysts predict significant year-over-year growth, largely driven by the strength in Online Ecosystem revenues, especially following the introduction of QuickBooks Solopreneur. Intuit has projected its revenues to increase by 10% to 11% year-over-year, aiming for a range between $6.605 billion and $6.655 billion. This projection closely matches the Zacks Consensus Estimate for revenues, which is pegged at $6.63 billion, indicating a year-over-year growth of 10.25%.

On a non-GAAP basis, Intuit's earnings per share are expected to fall within the range of $9.31 to $9.38, aligning with the consensus mark of $9.34 per share. This suggests a year-over-year rise of 4.71%. Notably, Intuit has a track record of exceeding the Zacks Consensus Estimate in its earnings over the last four quarters, with an average surprise of 16.18%. Such consistent performance highlights the company's operational efficiency and its ability to surpass market expectations.

The fiscal third-quarter performance is anticipated to benefit from a steady recovery in the Small Business segment, further bolstered by the strategic launch of QuickBooks Solopreneur. This period is crucial for Intuit, as it reflects the company's ability to adapt and thrive amidst evolving market demands. The focus will also be on the management's discussion of business conditions during the earnings call, as it will play a crucial role in shaping future earnings expectations and the stock's immediate price movement.

Analysts have revised their earnings estimates upwards by 0.2% over the past 30 days, indicating a positive reassessment of Intuit's financial outlook. This adjustment in earnings estimates is significant, as empirical research has shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock. Therefore, the recent upward revision in Intuit's earnings estimates could be a positive indicator for investors, suggesting potential favorable reactions in the stock's price following the earnings announcement.

On Monday, May 20, 2024, UBS revised its outlook on NASDAQ:INTU, better known as Intuit, adjusting its rating to Neutral and suggesting investors hold their positions. This decision reflects a nuanced view of Intuit's current market performance and future prospects. Intuit, a leading provider of financial management software such as TurboTax and QuickBooks, plays a pivotal role in its sector, competing against other tech giants in providing top-notch financial solutions to consumers and businesses alike. The adjustment in Intuit's price target to $670 from $625 by UBS, as reported by TheFly, indicates a positive yet cautious optimism about the company's value and growth potential.

Following this update, Intuit's stock experienced a minor dip, closing at $653.37, a slight decrease of 0.27% from its previous trading session. This movement was marginally more significant than the overall market trends, with the S&P 500, Dow, and Nasdaq witnessing declines of 0.21%, 0.1%, and 0.26%, respectively. Despite this short-term fluctuation, Intuit has demonstrated robust performance over the past month, with a notable increase of 6.84%, surpassing the gains in both the Computer and Technology sector and the S&P 500. This indicates a strong market position and investor confidence in Intuit's business model and product offerings.

The anticipation around Intuit's forthcoming earnings report, scheduled for May 23, 2024, is high among investors. Analysts predict the company will announce earnings per share (EPS) of $9.34, marking a 4.71% increase from the same quarter last year. Additionally, revenue forecasts are set at $6.63 billion. These projections are critical for investors as they provide insights into Intuit's financial health, operational efficiency, and ability to generate profit in a competitive landscape. A positive earnings report could further solidify Intuit's standing in the market and potentially influence its stock price positively.

Intuit's recent stock performance, with a 1.20% increase to $661.18, showcases the company's resilience and appeal to investors. The stock's fluctuation between $654.72 and $661.69 on the day and its performance over the past year, ranging from $400.22 to $671.01, highlight the volatility and growth potential inherent in the tech sector. With a market capitalization of approximately $185.12 billion and a trading volume of 774,761 shares, Intuit remains a significant player in the financial software industry, attracting attention from investors and analysts alike.

Intuit (NASDAQ:INTU) shares rose more than 7% yesterday following the company’s reported Q1 results, with EPS of $1.66 coming in better than the Street estimate of $1.19. Revenue was $2.6 billion, beating the Street estimate of $2.5 billion.

The Small Business segment was the primary Q1 upside driver, as the Consumer (primarily TurboTax)/ProTax segments weren't meaningful (10% revenue mix) in seasonally-light Q1. Small Business segment revenue grew 38% year-over-year (19% year-over-year excluding Mailchimp acquisition contribution). Adversely impacted by economic headwinds, Credit Karma (16% of Q1 revenue mix) grew revenue by 2%.

For fiscal 2023, the company expects EPS to be in the range of $13.59-$13.89, compared to the Street estimate of $13.75. Revenue is expected in the range of $14.04-14.25 billion, compared to the Street estimate of $14.53 billion.

Oppenheimer analysts provided their views on Intuit Inc. (NASDAQ:INTU) following the company’s 2022 Investor Day, where it highlighted the refreshed "five Big Bets" introduced three years ago. These are: (1) Revolutionize speed to benefit (using AI to serve customers), (2) Connect people to experts (turbotaxlive/QuickBooksLive), (3) Unlock smart money decisions (Credit Karma), (4) Be the center of small business growth (Mailchimp/Money Portfolio/Workforce Solutions), and (5) Disrupt the small business mid-market (QBO Advanced).

The company outlined its Consumer (TurboTax)/Small Business/Credit Karma segment growth strategies pursuing penetration of its now $312 billion TAM (vs. $290 billion last year). Penetrating Assisted consumer tax preparation via rapidly growing turbotaxlive, the company highlighted its long-targeted, recent entry into the sizable/ fragmented business tax market.

Increased from 10-15% in August, the company stressed 15-20% long-term revenue growth for the Small Business segment. Innovation has Credit Karma positioned for incremental growth, albeit likely below its long-term 20-25% CAGR expectation in 2023 on perceived macroeconomic headwinds.

The analysts maintained their Outperform rating and a $516 price target.

Intuit Inc. (NASDAQ:INTU) shares closed more than 3% higher following the company’s reported Q4 results, with EPS coming in at $1.10, better than the Street estimate of $0.99. Revenue fell 6% year-over-year to $2.4 billion, beating the Street estimate of $2.34 billion.

Small Business segment Q4 revenue growth of 41% year-over-year contributed to the full 2022-year segment revenue growth of 38%. Q4 Credit Karma revenue grew 17% year-over-year. The company’s 2022 Consumer (TurboTax) segment revenue grew 10% (entirely via revenue-per-return growth), a fifth consecutive year of double-digit growth.

The company anticipates Q1/23 EPS to be in the range of $1.14-$1.20, compared to the Street estimate of $1.86, and revenue growth in the range of 23-25%, including Mailchimp.

Full 2023-year EPS is expected to be in the range of $13.59-$13.89, compared to the Street estimate of $13.81, and revenue in the range of $14.485-14.7 billion, compared to the Street estimate of $14.47 billion.