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Intuit (INTU) to Report Q4 Earnings: What's in the Offing?

Zacks Equity Research
·3 mins read

Intuit Inc. INTU is scheduled to release fourth-quarter fiscal 2020 results on Aug 25.

The company had not issued any guidance for the fiscal fourth quarter. Markedly, on May 7, management withdrew the guidance for fiscal 2020, citing uncertainties related to the coronavirus pandemic’s impact on small businesses.

The Zacks Consensus Estimate for quarterly revenues is pinned at $1.55 billion, calling for a 55.8% year-over-year increase. The consensus mark for earnings is pegged at $1.20 per share, suggesting a significant improvement from the year-ago quarter’s loss per share of 9 cents.

Intuit Inc. Price and Consensus

Intuit Inc. Price and Consensus
Intuit Inc. Price and Consensus

Intuit Inc. price-consensus-chart | Intuit Inc. Quote

Intuit’s earnings beat estimates in each of the trailing four quarters, the average beat being 26.9%.

Let’s see how things have shaped up for the upcoming announcement.

Factors at Play

Intuit’s fiscal fourth-quarter performance is likely to have benefited from the postponement of tax filing from the third quarter to the fourth. Notably, on Mar 21, the U.S. Internal Revenue Services extended the tax filing deadline to Jul 15 from Apr 15, in an effort to provide relief to businesses and individuals in response to the pandemic.

As a result, the company is expected to report a robust jump in Consumer segment revenues. The Zacks Consensus Estimate of $599 million for the Consumer division revenues calls for a substantial improvement from the year-ago quarter figure of just $74 million.

Furthermore, Intuit’s fiscal fourth-quarter earnings are likely to have been driven by solid growth in the Online Ecosystem, aided by an expanding subscriber base for Quickbooks Online. The Zacks Consensus Estimate of $506 million for revenues from Online Ecosystem suggests a 12.2% increase from the year-ago quarter.

Additionally, the Zacks Consensus Estimate for Quickbooks Online’s revenues is pegged at $310 million for the fiscal fourth quarter, indicating a 14% rise, year on year.

What Our Model Says

Our proven model does not predict an earnings beat for Intuit this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Intuit currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:

Autodesk ADSK has an Earnings ESP of +4.44% and carries a Zacks Rank of 2, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ambarella AMBA has an Earnings ESP of +100.00% and carries a Zacks Rank of 3, at present.

Nutanix NTNX has an Earnings ESP of +5.71% and currently carries a Zacks Rank of 3.

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