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Intuit's (INTU) Earnings and Revenues Surpass Estimates in Q4 (Revised)
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Intuit (INTU - Free Report) reported fiscal fourth-quarter non-GAAP earnings of $1.10 per share, beating the Zacks Consensus Estimate of 98 cents per share. The bottom line plunged 44% from the year-ago quarter’s earnings of $1.97 per share.
Revenues of $2.41 billion surpassed the consensus mark of $2.35 billion but dropped 6% year over year.
Quarter in Detail
Segment-wise, Small Business and Self-Employed Group revenues grew 41% year over year to $1.77 billion. This rise was driven by the solid growth in customers for QuickBooks Online and a favorable mix-shift.
Total Online Ecosystem revenues surged 66% year over year to $1.28 billion. QuickBooks Online Accounting revenues were up 34% year over year to $623 million, mainly driven by the mix-shift, higher pricing and customer growth.
Online Services revenues, which include payroll, payments, time tracking and capital, soared 116% year over year to $657 million. This was driven by strong performances of the QuickBooks Online payroll and QuickBooks Online payments solutions, along with revenues from the new Mailchimp business.
Within the QuickBooks Online payroll, a mix-shift to INTU’s full-service offering and the continued uptick in the customer base acted as tailwinds. Within the payments, an increase in the charge volume per customer and ongoing customer growth drove revenues. Mailchimp contributed $265 million to total Online Services.
Total International online revenues increased a whopping 193% year over year on a constant-currency basis and 23% on an organic basis, excluding contributions from Mailchimp.
Total Desktop ecosystem revenues grew 1.5% year over year during the reported quarter to $489 million.
In the fiscal fourth quarter, revenues from Consumer Group decreased to $145 million from $852 billion reported a year ago, mainly driven by the earlier Internal Revenue Service (IRS) deadline this year. IRS income tax returns filing deadline was Apr 18, 2022.
ProConnect Group's professional tax revenues decreased to $25 million from $52 million in the year-ago quarter. The decrease reflected the earlier IRS opening this year.
The Credit Karma business contributed $475 million to Intuit’s fourth-quarter total revenues, up from $405 million in the year-ago quarter. The robust year-over-year growth reflects high levels of monthly active users and revenues per monthly active user. It reflects strength in credit cards and personal loans.
Intuit’s non-GAAP operating income decreased 39% to $433 million.
Intuit’s fiscal 2022 revenues grew 32% year over year to $12.73 billion and surpassed the Zacks Consensus Estimate of $12.66 billion. Excluding Mailchimp, INTU revenues went up 24%.
The company reported non-GAAP earnings of $11.85 per share, which outpaced the Zacks Consensus Estimate of $11.72 per share and grew 22% from the year-ago quarter.
In fiscal 2022, INTU’s non-GAAP operating income rose 29% to $4.50 billion.
Balance Sheet and Cash Flow
As of Jul 31, 2022, Intuit’s cash and investments were $3.28 billion compared with $3.90 billion as of Apr 30, 2022.
The company exited the fourth quarter with long-term debt of $6.42 billion, down from the previous quarter’s $6.85 billion.
Intuit repurchased stocks worth $508 million during the reported quarter and $1.9 billion during the fiscal year. At the end of the quarter, it had a remaining share-repurchase authorization of $3.5 billion. Additionally, INTU announced that its board approved a quarterly cash dividend of 78 cents per share payable on Oct 18, 2022. The newly approved cash dividend represents a year-over-year increase of 15%.
Outlook
Intuit projects fiscal 2023 revenues in the band of $14.485-$14.700 billion, indicating 14-16% growth.
The company anticipates non-GAAP operating income between $5.258 billion and $5.363 billion, indicating approximate year-over-year growth of 17-19%.
Intuit’s fiscal 2023 non-GAAP earnings per share forecast stands between $13.59 and $13.89, suggesting a year-over-year increase of 15-17%.
For the fiscal first quarter, INTU expects revenues to grow between 23% and 25% on a year-over-year basis. Adjusted earnings for the quarter are estimated in the range of $1.14-$1.20 per share.
Zacks Rank & Key Picks
Intuit currently carries a Zacks Rank #3 (Hold). Shares of INTU have declined 27.7% YTD.
The Zacks Consensus Estimate for Clearfield's fourth-quarter fiscal 2022 earnings has been revised 10 cents north to 80 cents per share over the past 30 days. For fiscal 2022, earnings estimates have moved 36 cents north to $3.13 per share in the past 30 days.
Clearfield’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 33.9%. Shares of CLFD have increased 49.9% over YTD.
The Zacks Consensus Estimate for Silicon Laboratories’ third-quarter 2022 earnings has increased 22.9% to $1.02 per share over the past 30 days. For 2022, earnings estimates have moved 14.2% up to $4.18 per share in the past 30 days.
Silicon Laboratories’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 63.6%. Shares of SLAB have decreased 33.4% over YTD.
The Zacks Consensus Estimate for Taiwan Semiconductor's third-quarter 2022 earnings has been revised a penny southward to $1.69 per share over the past 30 days. For 2022, earnings estimates have moved 41 cents north to $6.30 per share in the past 60 days.
TSM's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.9%. Shares of the company have decreased 27.4% over YTD.
(We are reissuing this article to correct a mistake. The original article, issued on August 24, 2022, should no longer be relied upon.)
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Intuit's (INTU) Earnings and Revenues Surpass Estimates in Q4 (Revised)
Intuit (INTU - Free Report) reported fiscal fourth-quarter non-GAAP earnings of $1.10 per share, beating the Zacks Consensus Estimate of 98 cents per share. The bottom line plunged 44% from the year-ago quarter’s earnings of $1.97 per share.
Revenues of $2.41 billion surpassed the consensus mark of $2.35 billion but dropped 6% year over year.
Quarter in Detail
Segment-wise, Small Business and Self-Employed Group revenues grew 41% year over year to $1.77 billion. This rise was driven by the solid growth in customers for QuickBooks Online and a favorable mix-shift.
Total Online Ecosystem revenues surged 66% year over year to $1.28 billion. QuickBooks Online Accounting revenues were up 34% year over year to $623 million, mainly driven by the mix-shift, higher pricing and customer growth.
Online Services revenues, which include payroll, payments, time tracking and capital, soared 116% year over year to $657 million. This was driven by strong performances of the QuickBooks Online payroll and QuickBooks Online payments solutions, along with revenues from the new Mailchimp business.
Within the QuickBooks Online payroll, a mix-shift to INTU’s full-service offering and the continued uptick in the customer base acted as tailwinds. Within the payments, an increase in the charge volume per customer and ongoing customer growth drove revenues. Mailchimp contributed $265 million to total Online Services.
Total International online revenues increased a whopping 193% year over year on a constant-currency basis and 23% on an organic basis, excluding contributions from Mailchimp.
Total Desktop ecosystem revenues grew 1.5% year over year during the reported quarter to $489 million.
In the fiscal fourth quarter, revenues from Consumer Group decreased to $145 million from $852 billion reported a year ago, mainly driven by the earlier Internal Revenue Service (IRS) deadline this year. IRS income tax returns filing deadline was Apr 18, 2022.
ProConnect Group's professional tax revenues decreased to $25 million from $52 million in the year-ago quarter. The decrease reflected the earlier IRS opening this year.
The Credit Karma business contributed $475 million to Intuit’s fourth-quarter total revenues, up from $405 million in the year-ago quarter. The robust year-over-year growth reflects high levels of monthly active users and revenues per monthly active user. It reflects strength in credit cards and personal loans.
Intuit’s non-GAAP operating income decreased 39% to $433 million.
Intuit Inc. Price, Consensus and EPS Surprise
Intuit Inc. price-consensus-eps-surprise-chart | Intuit Inc. Quote
Fiscal 2022 Highlights
Intuit’s fiscal 2022 revenues grew 32% year over year to $12.73 billion and surpassed the Zacks Consensus Estimate of $12.66 billion. Excluding Mailchimp, INTU revenues went up 24%.
The company reported non-GAAP earnings of $11.85 per share, which outpaced the Zacks Consensus Estimate of $11.72 per share and grew 22% from the year-ago quarter.
In fiscal 2022, INTU’s non-GAAP operating income rose 29% to $4.50 billion.
Balance Sheet and Cash Flow
As of Jul 31, 2022, Intuit’s cash and investments were $3.28 billion compared with $3.90 billion as of Apr 30, 2022.
The company exited the fourth quarter with long-term debt of $6.42 billion, down from the previous quarter’s $6.85 billion.
During fiscal 2022, Intuit generated operating cash flow worth $3.89 billion.
Intuit repurchased stocks worth $508 million during the reported quarter and $1.9 billion during the fiscal year. At the end of the quarter, it had a remaining share-repurchase authorization of $3.5 billion. Additionally, INTU announced that its board approved a quarterly cash dividend of 78 cents per share payable on Oct 18, 2022. The newly approved cash dividend represents a year-over-year increase of 15%.
Outlook
Intuit projects fiscal 2023 revenues in the band of $14.485-$14.700 billion, indicating 14-16% growth.
The company anticipates non-GAAP operating income between $5.258 billion and $5.363 billion, indicating approximate year-over-year growth of 17-19%.
Intuit’s fiscal 2023 non-GAAP earnings per share forecast stands between $13.59 and $13.89, suggesting a year-over-year increase of 15-17%.
For the fiscal first quarter, INTU expects revenues to grow between 23% and 25% on a year-over-year basis. Adjusted earnings for the quarter are estimated in the range of $1.14-$1.20 per share.
Zacks Rank & Key Picks
Intuit currently carries a Zacks Rank #3 (Hold). Shares of INTU have declined 27.7% YTD.
Some better-ranked stocks from the broader Computer and Technology sector are Clearfield (CLFD - Free Report) , Silicon Laboratories (SLAB - Free Report) and Taiwan Semiconductor (TSM - Free Report) , each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Clearfield's fourth-quarter fiscal 2022 earnings has been revised 10 cents north to 80 cents per share over the past 30 days. For fiscal 2022, earnings estimates have moved 36 cents north to $3.13 per share in the past 30 days.
Clearfield’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 33.9%. Shares of CLFD have increased 49.9% over YTD.
The Zacks Consensus Estimate for Silicon Laboratories’ third-quarter 2022 earnings has increased 22.9% to $1.02 per share over the past 30 days. For 2022, earnings estimates have moved 14.2% up to $4.18 per share in the past 30 days.
Silicon Laboratories’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 63.6%. Shares of SLAB have decreased 33.4% over YTD.
The Zacks Consensus Estimate for Taiwan Semiconductor's third-quarter 2022 earnings has been revised a penny southward to $1.69 per share over the past 30 days. For 2022, earnings estimates have moved 41 cents north to $6.30 per share in the past 60 days.
TSM's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.9%. Shares of the company have decreased 27.4% over YTD.
(We are reissuing this article to correct a mistake. The original article, issued on August 24, 2022, should no longer be relied upon.)