Intuit Earnings: What To Look For From INTU

Tax and accounting software provider, Intuit (NASDAQ:INTU) will be announcing earnings results tomorrow after market close. Here’s what investors should know.

Intuit beat analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $6.74 billion, up 11.9% year on year. It was a decent quarter for the company, with in-line revenue guidance for the next quarter.

Is Intuit a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Intuit’s revenue to grow 13.8% year on year to $3.09 billion, improving from the 12.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.85 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Intuit has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Intuit’s peers in the finance and HR software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. BlackLine delivered year-on-year revenue growth of 11%, beating analysts’ expectations by 1.4%, and Marqeta reported a revenue decline of 45.8%, topping estimates by 3.1%. BlackLine traded up 11.8% following the results while Marqeta was also up 8.6%.

Read our full analysis of BlackLine’s results here and Marqeta’s results here.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 thanks to cooling inflation. 2024 has been a different story as mixed signals have led to market volatility, and while some of the finance and HR software stocks have fared somewhat better, they have not been spared, with share prices down 2.2% on average over the last month. Intuit is up 4.6% during the same time and is heading into earnings with an average analyst price target of $695.3 (compared to the current share price of $666.51).

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