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Is Intuit (INTU) Likely to Surpass Q2 Earnings Estimates?
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Intuit (INTU - Free Report) is likely to beat expectations when it reports second-quarter fiscal 2023 results after market close on Feb 23. In the last reported quarter, the company delivered an earnings surprise of 39.5%.
The company’s earnings surpassed estimates thrice in the trailing four quarters, while missing the same on one occasion, the average being 9.3%.
For the fiscal second quarter, Intuit projects year-over-year revenue growth of 8-9%. The Zacks Consensus Estimate for revenues is pegged at $2.90 billion, indicating year-over-year growth of 8.4%.
On a non-GAAP basis, Intuit anticipates earnings per share of $1.41-$1.45. The consensus mark for earnings is pegged at $1.43 per share, suggesting a year-over-year decline of 7.7%.
The gradual recovery in Small Business and Self-Employed is expeted to have contributed to the top line in the quarter under review. The Zacks Consensus Estimate for Small Business’ quarterly revenues is pegged at $1.83 billion. In the last quarter, the business unit grew 38%, excluding the contribution of $264 million from Mailchimp.
Intuit’s fiscal second-quarter revenues are likely to have witnessed solid growth in the Online Ecosystem, driven by an expanding subscriber base for Quickbooks Online and ARPC. The Zacks Consensus Estimate for total Online Ecosystem’s revenues is pegged at $1.36 billion for the quarter under review, indicating a 20.9% rise from the prior year's reported figure. The consensus mark for Quickbooks Online’s revenues stands at $687 million, suggesting a 25.6% year-over-year improvement. The Online Ecosystem is likely to have boosted overall sales in the second quarter.
The solid momentum of INTU’s leading product, QuickBooks Capital and improving customer retention rates are anticipated to have acted as tailwinds in the fiscal second quarter.
In the fiscal second quarter, customer addition and extension filers are likely to boost revenues from the company’s Consumer tax business. The Zacks Consensus Estimate for the Consumer tax business’ revenues is pegged at $453 million, higher than the year-ago quarter's reported figure of $411 million.
However, due to the macroeconomic volatility, Intuit business partners have been pulling back from extending their credit, risking credit performance deterioration in the near term. This is expected to have led to lower Credit Karma revenues in the quarter to be reported. The business unit contributed $425 million to INTU’s first-quarter fiscal 2023 total revenues. The Zacks Consensus Estimate for Credit Karma’s second-quarter revenues is pegged at $372 million, indicating a year-over-year decline of 16.2%.
Earnings Whisper
Our proven model conclusively predicts an earnings beat for Intuit this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($1.44 per share) and the Zacks Consensus Estimate ($1.43 per share), is +0.42%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: INTU carries a Zacks Rank #3.
Other Stocks With Favorable Combinations
Per our model, OneSpaWorld (OSW - Free Report) , American Eagle Outfitters (AEO - Free Report) and Ulta Beauty (ULTA - Free Report) also have the right combination of elements to post an earnings beat in their upcoming releases.
OneSpaWorld has an Earnings ESP of +6.67% and sports a Zacks Rank #1 at present. The company is scheduled to report its fourth-quarter 2022 results on Feb 22. OneSpaWorld’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 84.2%.
The Zacks Consensus Estimate for OSW’s fourth-quarter earnings is pegged at 11 cents per share, indicating a 1200% surge from the year-ago quarter’s loss of a penny. The consensus mark for revenues stands at $166.6 million, suggesting a year-over-year increase of 94.5%.
American Eagle has an Earnings ESP of +1.96% and currently carries a Zacks Rank #2. The company is slated to report its fourth-quarter fiscal 2023 results on Mar 1. American Eagle’s earnings beat the Zacks Consensus Estimate in one of the preceding four quarters, missing twice and matching once, the average surprise being negative 5%.
The Zacks Consensus Estimate for AEO’s fiscal fourth-quarter earnings stands at 30 cents per share, implying a year-over-year decline of 14.3%. The company is estimated to report revenues of $1.47 billion, which suggests a fall of 2.5% from the year-ago quarter's reported figure.
Ulta Beauty has an Earnings ESP of +8.53% and carries a Zacks Rank #2 at present. The company is set to report fourth-quarter fiscal 2023 results on Mar 9. ULTA’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 26.2%.
The Zacks Consensus Estimate for ULTA’s quarterly earnings is pegged at $5.53 per share, suggesting a year-over-year increase of 2.2%. Its quarterly revenues are estimated to increase 10.3% year over year to $3.01 billion.
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Is Intuit (INTU) Likely to Surpass Q2 Earnings Estimates?
Intuit (INTU - Free Report) is likely to beat expectations when it reports second-quarter fiscal 2023 results after market close on Feb 23. In the last reported quarter, the company delivered an earnings surprise of 39.5%.
The company’s earnings surpassed estimates thrice in the trailing four quarters, while missing the same on one occasion, the average being 9.3%.
For the fiscal second quarter, Intuit projects year-over-year revenue growth of 8-9%. The Zacks Consensus Estimate for revenues is pegged at $2.90 billion, indicating year-over-year growth of 8.4%.
On a non-GAAP basis, Intuit anticipates earnings per share of $1.41-$1.45. The consensus mark for earnings is pegged at $1.43 per share, suggesting a year-over-year decline of 7.7%.
Intuit Inc. Price and EPS Surprise
Intuit Inc. price-eps-surprise | Intuit Inc. Quote
Key Factors to Note
The gradual recovery in Small Business and Self-Employed is expeted to have contributed to the top line in the quarter under review. The Zacks Consensus Estimate for Small Business’ quarterly revenues is pegged at $1.83 billion. In the last quarter, the business unit grew 38%, excluding the contribution of $264 million from Mailchimp.
Intuit’s fiscal second-quarter revenues are likely to have witnessed solid growth in the Online Ecosystem, driven by an expanding subscriber base for Quickbooks Online and ARPC. The Zacks Consensus Estimate for total Online Ecosystem’s revenues is pegged at $1.36 billion for the quarter under review, indicating a 20.9% rise from the prior year's reported figure. The consensus mark for Quickbooks Online’s revenues stands at $687 million, suggesting a 25.6% year-over-year improvement. The Online Ecosystem is likely to have boosted overall sales in the second quarter.
The solid momentum of INTU’s leading product, QuickBooks Capital and improving customer retention rates are anticipated to have acted as tailwinds in the fiscal second quarter.
In the fiscal second quarter, customer addition and extension filers are likely to boost revenues from the company’s Consumer tax business. The Zacks Consensus Estimate for the Consumer tax business’ revenues is pegged at $453 million, higher than the year-ago quarter's reported figure of $411 million.
However, due to the macroeconomic volatility, Intuit business partners have been pulling back from extending their credit, risking credit performance deterioration in the near term. This is expected to have led to lower Credit Karma revenues in the quarter to be reported. The business unit contributed $425 million to INTU’s first-quarter fiscal 2023 total revenues. The Zacks Consensus Estimate for Credit Karma’s second-quarter revenues is pegged at $372 million, indicating a year-over-year decline of 16.2%.
Earnings Whisper
Our proven model conclusively predicts an earnings beat for Intuit this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($1.44 per share) and the Zacks Consensus Estimate ($1.43 per share), is +0.42%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: INTU carries a Zacks Rank #3.
Other Stocks With Favorable Combinations
Per our model, OneSpaWorld (OSW - Free Report) , American Eagle Outfitters (AEO - Free Report) and Ulta Beauty (ULTA - Free Report) also have the right combination of elements to post an earnings beat in their upcoming releases.
OneSpaWorld has an Earnings ESP of +6.67% and sports a Zacks Rank #1 at present. The company is scheduled to report its fourth-quarter 2022 results on Feb 22. OneSpaWorld’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 84.2%.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for OSW’s fourth-quarter earnings is pegged at 11 cents per share, indicating a 1200% surge from the year-ago quarter’s loss of a penny. The consensus mark for revenues stands at $166.6 million, suggesting a year-over-year increase of 94.5%.
American Eagle has an Earnings ESP of +1.96% and currently carries a Zacks Rank #2. The company is slated to report its fourth-quarter fiscal 2023 results on Mar 1. American Eagle’s earnings beat the Zacks Consensus Estimate in one of the preceding four quarters, missing twice and matching once, the average surprise being negative 5%.
The Zacks Consensus Estimate for AEO’s fiscal fourth-quarter earnings stands at 30 cents per share, implying a year-over-year decline of 14.3%. The company is estimated to report revenues of $1.47 billion, which suggests a fall of 2.5% from the year-ago quarter's reported figure.
Ulta Beauty has an Earnings ESP of +8.53% and carries a Zacks Rank #2 at present. The company is set to report fourth-quarter fiscal 2023 results on Mar 9. ULTA’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 26.2%.
The Zacks Consensus Estimate for ULTA’s quarterly earnings is pegged at $5.53 per share, suggesting a year-over-year increase of 2.2%. Its quarterly revenues are estimated to increase 10.3% year over year to $3.01 billion.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.