Intuit (INTU) to Report Q4 Earnings: What's in the Offing?
Intuit INTU is scheduled to report fourth-quarter fiscal 2023 results on Aug 24.
The company projects fiscal fourth-quarter revenues to grow year over year in the 9-10% range. The Zacks Consensus Estimate for revenues is pegged at $2.64 billion, indicating year-over-year growth of 9.4%.
On a non-GAAP basis, Intuit anticipates earnings per share in the range of $1.43-$1.48. The consensus mark for earnings is pegged at $1.38 per share, suggesting a year-over-year rise of 25.5%.
Intuit’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 27.8%.
Let’s see how things have shaped up before the announcement.
Intuit Inc. Price and EPS Surprise
Intuit Inc. price-eps-surprise | Intuit Inc. Quote
Factors to Note
The gradual recovery in Small Business and Self-Employed 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 $2.1 billion. In the last quarter, the business unit grew 21%, driven by solid growth in customers for QuickBooks Online, a favorable mix shift and the addition of Mailchimp.
Intuit’s fiscal fourth-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 $1.54 billion for the quarter under review, indicating a 20.7% rise from the prior year's reported figure.
Our estimate for Quickbooks Online’s revenues is pegged at $778.1 million, suggesting an 18.4% year-over-year improvement. The Online Ecosystem is likely to have boosted overall sales in the fourth 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 fiscal fourth quarter.
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 $410 million to INTU’s third-quarter fiscal 2023 total revenues. Our estimate for Credit Karma’s fourth-quarter revenues is pegged at $390 million, indicating a year-over-year decline of 17.9%.
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.
Though INTU currently carries a Zacks Rank of 2, it has 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
Per our model, Workday WDAY, PagSeguro Digital PAGS and Science Applications International SAIC have the right combination of elements to post an earnings beat in their upcoming releases.
Workday sports a Zacks Rank #1 and has an Earnings ESP of +1.82%. The company is scheduled to report second-quarter fiscal 2024 results on Aug 24. Its earnings beat the Zacks Consensus Estimate in the preceding four quarters, with the average surprise being 13.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Workday’s second-quarter earnings stands at $1.25 per share, 50.6% higher than the year-ago quarter. It is estimated to report revenues of $1.77 billion, which suggests an increase of approximately 15.5% from the year-ago quarter.
PagSeguro carries a Zacks Rank #2 and has an Earnings ESP of +6.93%. The company is anticipated to report second-quarter 2023 results on Aug 24. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 36.7%.
The Zacks Consensus Estimate for PAGS’ second-quarter earnings is pegged at 25 cents per share, indicating a year-over-year decline of 46.8%. The consensus mark for revenues stands at $689.4 million, suggesting a year-over-year decrease of 13.2%.
Science Applications is anticipated to report second-quarter fiscal 2024 results on Sep 7. The company has a Zacks Rank #3 and an Earnings ESP of +5.00% at present. Science Applications’ earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 14.5%.
The Zacks Consensus Estimate for SAIC’s second-quarter earnings is pegged at $1.60 per share, suggesting a decline of 8.6% from the year-ago quarter’s earnings of $1.75. Science Applications’ quarterly revenues are estimated to decrease 7.6% year over year to $1.69 billion.
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Intuit Inc. (INTU) : Free Stock Analysis Report
Workday, Inc. (WDAY) : Free Stock Analysis Report
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PagSeguro Digital Ltd. (PAGS) : Free Stock Analysis Report
