Intuit (INTU) Reports Earnings Tomorrow. What To Expect
Tax and accounting software provider, Intuit (NASDAQ:INTU) will be announcing earnings results tomorrow after the bell. Here's what investors should know.
Last quarter Intuit reported revenues of $2.71 billion, up 12.3% year on year, beating analyst revenue expectations by 2.6%. It was a mixed quarter for the company, with revenue and EPS exceeding expectations. On the other hand, its gross margin declined and its revenue guidance for next year suggests that growth will slow.
Is Intuit buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Intuit's revenue to grow 11% year on year to $2.88 billion, slowing down from the 29.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.98 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates twice over the last two years.
Looking at Intuit's peers in the finance and HR software segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. BlackLine delivered top-line growth of 12.2% year on year, beating analyst estimates by 0.6% and Ceridian reported revenues up 19.6% year on year, exceeding estimates by 2.2%. BlackLine traded up 2.2% on the results, Ceridian was down 1.3%.
Read our full analysis of BlackLine's results here and Ceridian's results here.
There has been positive sentiment among investors in the finance and HR software segment, with the stocks up on average 12% over the last month. Intuit is up 15.7% during the same time, and is heading into the earnings with analyst price target of $561.5, compared to share price of $564.07.
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The author has no position in any of the stocks mentioned.
