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Intuit Q1 Preview: Another EPS Beat Coming?

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The Zacks Computer and Technology sector has tumbled in 2022 amid a hawkish pivot from the Federal Reserve, down more than 30% and widely lagging behind the S&P 500.

A widely-recognized name in the realm, Intuit (INTU - Free Report) , is on deck to unveil Q1 earnings on November 29th, after the market close.

Intuit is a business and financial software company that develops and sells financial, accounting, and tax preparation software and related services for small businesses, consumers, and accounting professionals globally.

Currently, the company carries a Zacks Rank #4 (Sell) paired with an overall VGM Score of a C.

How does everything else stack up heading into the release? Let’s take a deeper dive and find out.

Share Performance & Valuation

INTU shares have sailed through rough waters in 2022, down nearly 40% and underperforming the S&P 500 by a wide margin.

Zacks Investment Research
Image Source: Zacks Investment Research

Over the last month, INTU shares have continued to lag behind the general market, losing 6.6% in value vs. the S&P 500’s roughly 4% gain.

Zacks Investment Research
Image Source: Zacks Investment Research

The company’s forward earnings multiple currently sits at 41.3X, above its 46.9X five-year median and reflecting an 86% premium relative to its Zacks Computer and Technology sector average.

The company sports a Style Score of a D for Value.

Zacks Investment Research
Image Source: Zacks Investment Research

Quarterly Estimates

A singular analyst has upped their earnings outlook over the last several months, with the Zacks Consensus EPS Estimate of $1.17 indicating a 23.5% Y/Y decrease in quarterly earnings.

Zacks Investment Research
Image Source: Zacks Investment Research

The company’s top-line is in better health; the Zacks Consensus Sales Estimate of $2.5 billion suggests an improvement of more than 20% from year-ago quarterly sales of $2 billion.

Quarterly Performance

INTU has consistently exceeded quarterly estimates, penciling in nine EPS beats across its last ten releases. In its latest print, the company registered a 12.2% bottom-line beat.

Top-line results have been even more robust; INTU has exceeded the Zacks Consensus Sales Estimate in 22 consecutive quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.

Zacks Investment Research
Image Source: Zacks Investment Research

Putting Everything Together

INTU shares have sailed through rough waters in 2022, underperforming the general market across several timeframes.

Shares currently trade at a 41.3X forward earnings multiple, undoubtedly on the higher end of the spectrum and above its five-year median value.

One analyst has upped their earnings outlook for the quarter, with estimates suggesting a Y/Y decrease in earnings but an uptick in revenue.

The company has been the definition of consistency within its quarterly results, exceeding estimates regularly.

Heading into the release, Intuit (INTU - Free Report) carries a Zacks Rank #4 (Sell) paired with an Earnings ESP Score of 3.2%.


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