Intuit (INTU) to Report Q1 Earnings: What's in the Offing?
Intuit INTU is scheduled to report first-quarter fiscal 2024 results on Nov 28.
The company projects year-over-year revenue growth of 10-11% to $2.86-$2.895 billion for the fiscal first quarter.
The Zacks Consensus Estimate for revenues is pegged at $2.87 billion, indicating year-over-year growth of 10.69%.
On a non-GAAP basis, Intuit anticipates earnings per share in the range of $1.94-$2. The consensus mark for earnings is pegged at $1.98 per share, suggesting a year-over-year rise of 19.28%.
Intuit’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 29.62%.
Let’s see how things have shaped up before the announcement.
Intuit Inc. Price, Consensus and EPS Surprise
Intuit Inc. price-consensus-eps-surprise-chart | Intuit Inc. Quote
Factors to Note
Steady recovery in the Small Business and Self-Employed segment is expected to have contributed to the top line in the quarter under review. Our estimate for Small Business and Self-Employed’s quarterly revenues is pegged at $2.24 billion.
Intuit’s fiscal first-quarter revenues are likely to have witnessed solid growth in the Online Ecosystem, driven by an expanding subscriber base for Quickbooks Online and ARPC. Our estimate for total Online Ecosystem’s revenues is pegged at $1.53 billion for the quarter under review, indicating a 13.4% rise from the prior year's reported figure.
Our estimate for Quickbooks Online’s revenues is pegged at $383.9 million, suggesting a 23% year-over-year improvement. The Online Ecosystem is likely to have boosted overall sales in the fiscal first quarter.
The solid momentum of INTU’s leading product, QuickBooks Capital, and improving customer retention rates are anticipated to have acted as tailwinds in the quarter under review.
However, due to the ongoing macroeconomic volatility, Intuit’s business partners have been pulling back from extending their credit, risking credit performance deterioration in the near term.
This is expected to have led to lower Credit Karma revenues in the quarter to be reported. The business unit contributed $424 million to INTU’s fourth-quarter fiscal 2023 total revenues, down 10.7% year over year due to macroeconomic headwinds in personal loans, auto insurance, home loans and auto loans. Our estimate for Credit Karma’s fiscal first-quarter revenues is pegged at $111.4 million.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Intuit this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
INTU currently has a Zacks Rank of 3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Here are some companies that have the right combination of elements to post an earnings beat this quarter.
Snowflake SNOW currently has an Earnings ESP of +67.33% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Snowflake is set to announce its third-quarter fiscal 2024 results on Nov 29. SNOW shares have gained 17.7% year to date.
Costco Wholesale COST presently has an Earnings ESP of +3.49% and a Zacks Rank #3.
Costco is set to announce its first-quarter fiscal 2024 results on Dec 14. COST shares have gained 30% year to date.
American Woodmark AMWD currently has an Earnings ESP of +14.30% and a Zacks Rank #3.
American Woodmark is set to announce its second-quarter fiscal 2024 results on Nov 30. AMWD shares have increased 51.1% year to date.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Costco Wholesale Corporation (COST) : Free Stock Analysis Report
Intuit Inc. (INTU) : Free Stock Analysis Report
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Snowflake Inc. (SNOW) : Free Stock Analysis Report
