Intuit's (INTU) Q4 Earnings Beat Expectations, Sales Rise Y/Y
Intuit INTU reported fiscal fourth-quarter 2023 non-GAAP earnings of $1.65 per share, beating the Zacks Consensus Estimate by 19.57%. The bottom line surged 65% from the year-ago quarter.
Revenues of $2.71 billion beat the consensus mark by 2.68% and increased 12.3% year over year.
Intuit Inc. Price, Consensus and EPS Surprise
Intuit Inc. price-consensus-eps-surprise-chart | Intuit Inc. Quote
Quarter Details
Segment-wise, Small Business and Self-Employed Group revenues grew 21% year over year to $2.13 billion.
Total Online Ecosystem revenues grew 21.2% year over year to $1.55 billion. QuickBooks Online Accounting revenues were up 22.3% year over year to $762 million.
Online Services revenues, which include payroll, payments, time tracking and capital, grew 20.1% year over year to $789 million. This was driven by strong performances of Mailchimp, QuickBooks Online payroll and QuickBooks Online payments solutions.
Within QuickBooks Online payroll, a mix-shift to INTU’s full-service offering and the continued uptick in the customer base acted as tailwinds. Within QuickBooks Online payments, an increase in the charge volume per customer and ongoing customer growth drove revenues.
Total international online revenues increased 31% year over year on a constant-currency basis.
Total Desktop Ecosystem revenues grew 18.8% year over year during the reported quarter to $581 million.
In the fiscal fourth quarter, revenues from Consumer Group decreased 11.7% to $128 million. Further, ProTax Group's professional tax revenues increased by 12% year over year to $28 million.
The Credit Karma business contributed $424 million to Intuit’s fourth-quarter total revenues, down 10.7% year over year due to macroeconomic headwinds in personal loans, auto insurance, home loans and auto loans.
Intuit’s non-GAAP operating income climbed 44.8% to $627 million.
Balance Sheet and Cash Flow
As of Apr 30, 2023, Intuit’s cash and investments were $3.6 billion compared with $4.3 billion as of Apr 30, 2023.
The company exited the fiscal fourth quarter with long-term debt of $6.12 billion.
During the 12 months of fiscal 2023, the company generated $5.04 billion worth cash from operating activities.
Intuit repurchased $2 billion of stock during fiscal-year 2023. The board approved a new $2.3 billion repurchase authorization, giving the company a total authorization of $3.8 billion to repurchase shares.
INTU announced that its board approved a quarterly dividend of 90 cents per share payable on Oct 17, 2023. The newly approved dividend represents a year-over-year increase of 15%.
Outlook
For the fiscal first quarter of 2024, INTU expects revenues to grow between 10% and 11% on a year-over-year basis in the band of $2.86-$2.895 billion. Non-GAAP earnings for the quarter are estimated in the range of $1.94-$2 per share.
Intuit projects fiscal 2024 revenues in the band of $15.89-$16.105 billion, indicating 11-12% growth.
The company anticipates non-GAAP operating income between $6.155 billion and $6.26 billion.
Intuit’s fiscal 2024 non-GAAP earnings per share forecast stands between $16.17 and $16.47.
Zacks Rank & Other Key Picks
Intuit carries a Zacks Rank #2 (Buy) at present. Shares of INTU have gained 28.1% over the year-to-date period.
Some other top-ranked stocks from the broader Computer and Technology sector are Palo Alto Networks PANW, Manhattan Associates MANH and Salesforce CRM. Palo Alto Networks and Manhattan Associates sport a Zacks Rank #1 (Strong Buy) each, while Salesforce carries a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Palo Alto Networks' first-quarter fiscal 2024 earnings has been revised upward by a penny to $1.11 per share in the past seven days. For fiscal 2024, earnings estimates have increased by a couple of cents to $4.97 per share in the past seven days.
Palo Alto Networks’ earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 22.2%. Shares of PANW have surged 63.6% year to date.
The Zacks Consensus Estimate for Manhattan Associates’ third-quarter 2023 earnings has been revised 5 cents northward to 77 cents per share in the past 30 days. For 2023, earnings estimates have moved 22 cents upward to $3.09 per share in the past 30 days.
Manhattan Associates’ earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 31.6%. Shares of MANH have rallied 56.5% year to date.
The Zacks Consensus Estimate for Salesforce's second-quarter fiscal 2024 earnings has remained unchanged at $1.90 per share in the past 60 days. For fiscal 2024, earnings estimates have remained unchanged at $7.44 per share in the past 60 days.
Salesforce's earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 15.5%. Shares of CRM have surged 55% year to date.
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