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Why Is Intuit (INTU) Up 8.3% Since Last Earnings Report?
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A month has gone by since the last earnings report for Intuit (INTU - Free Report) . Shares have added about 8.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Intuit due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Intuit’s Q3 Earnings Beat Expectations, Sales Miss
Intuit reported fiscal third-quarter 2023 non-GAAP earnings of $8.92 per share, beating the Zacks Consensus Estimate of $8.45 per share. The bottom line surged 17% from the year-ago quarter’s earnings of $7.65 per share.
Revenues of $6.02 billion missed the consensus mark of $6.09 billion but increased 7% year over year.
Quarter Details
Segment-wise, Small Business and Self-Employed Group revenues grew 21% year over year to $2.02 billion. This rise was driven by the solid growth in customers for QuickBooks Online, a favorable mix-shift and the addition of Mailchimp.
Total Online Ecosystem revenues grew 23% year over year to $1.47 billion. QuickBooks Online Accounting revenues were up 25% year over year to $723 million, mainly driven by the mix-shift, higher pricing and customer growth.
Online Services revenues which include payroll, payments, time tracking and capital, grew 21% year over year to $745 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 12% year over year on a constant-currency basis.
Total Desktop ecosystem revenues grew 16.4% year over year during the reported quarter to $553 million.
In the fiscal third quarter, revenues from Consumer Group increased to $3.34 billion from $3.24 billion reported a year ago, mainly driven by a strong peak in new customers and extension filers. Further, ProTax Group's professional tax revenues decreased by 5% to $246 million from $258 million in the year-ago quarter.
The Credit Karma business contributed $410 million to Intuit’s third-quarter total revenues, down from $468 million in the year-ago quarter. The drastic year-over-year fall reflects headwinds in personal loans, home loans, auto insurance and auto loans, partially offset by strength in credit cards and Credit Karma Money.
Intuit’s non-GAAP operating income climbed 16% to $3.36 billion.
Balance Sheet and Cash Flow
As of Apr 30, 2023, Intuit’s cash and investments were $4.3 billion compared with $2.07 billion as of Jan 31, 2023.
The company exited the fiscal third quarter with long-term debt of $6.1 billion, down from the previous quarter’s $6.58 billion.
During the first nine months of fiscal 2023, the company generated $4.20 billion worth cash from operating activities.
Intuit repurchased stocks worth $483 million during the fiscal third quarter and had a remaining share-repurchase authorization of $2 billion at the end of the quarter. INTU announced that its board approved a quarterly cash dividend of 78 cents per share payable on Jul 18, 2023. The newly approved cash dividend represents a year-over-year increase of 15%.
Outlook
Intuit projects fiscal 2023 revenues in the band of $14.279-$14.317 billion, indicating 12-13% growth.
The company anticipates non-GAAP operating income between $5.441 billion and $5.461 billion, indicating approximate year-over-year growth of 21%.
Intuit’s fiscal 2023 non-GAAP earnings per share forecast stands between $14.20 and $14.25, suggesting year-over-year increase of 20%.
For the fiscal fourth quarter, INTU expects revenues to grow between 9% and 10% on a year-over-year basis. Adjusted earnings for the quarter are estimated in the range of $1.43-$1.48 per share.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 30.48% due to these changes.
VGM Scores
Currently, Intuit has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Intuit has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Intuit belongs to the Zacks Computer - Software industry. Another stock from the same industry, Synopsys (SNPS - Free Report) , has gained 7.8% over the past month. More than a month has passed since the company reported results for the quarter ended April 2023.
Synopsys reported revenues of $1.39 billion in the last reported quarter, representing a year-over-year change of +9%. EPS of $2.54 for the same period compares with $2.50 a year ago.
For the current quarter, Synopsys is expected to post earnings of $2.73 per share, indicating a change of +30% from the year-ago quarter. The Zacks Consensus Estimate has changed +0% over the last 30 days.
Synopsys has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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Why Is Intuit (INTU) Up 8.3% Since Last Earnings Report?
A month has gone by since the last earnings report for Intuit (INTU - Free Report) . Shares have added about 8.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Intuit due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Intuit’s Q3 Earnings Beat Expectations, Sales Miss
Intuit reported fiscal third-quarter 2023 non-GAAP earnings of $8.92 per share, beating the Zacks Consensus Estimate of $8.45 per share. The bottom line surged 17% from the year-ago quarter’s earnings of $7.65 per share.
Revenues of $6.02 billion missed the consensus mark of $6.09 billion but increased 7% year over year.
Quarter Details
Segment-wise, Small Business and Self-Employed Group revenues grew 21% year over year to $2.02 billion. This rise was driven by the solid growth in customers for QuickBooks Online, a favorable mix-shift and the addition of Mailchimp.
Total Online Ecosystem revenues grew 23% year over year to $1.47 billion. QuickBooks Online Accounting revenues were up 25% year over year to $723 million, mainly driven by the mix-shift, higher pricing and customer growth.
Online Services revenues which include payroll, payments, time tracking and capital, grew 21% year over year to $745 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 12% year over year on a constant-currency basis.
Total Desktop ecosystem revenues grew 16.4% year over year during the reported quarter to $553 million.
In the fiscal third quarter, revenues from Consumer Group increased to $3.34 billion from $3.24 billion reported a year ago, mainly driven by a strong peak in new customers and extension filers. Further, ProTax Group's professional tax revenues decreased by 5% to $246 million from $258 million in the year-ago quarter.
The Credit Karma business contributed $410 million to Intuit’s third-quarter total revenues, down from $468 million in the year-ago quarter. The drastic year-over-year fall reflects headwinds in personal loans, home loans, auto insurance and auto loans, partially offset by strength in credit cards and Credit Karma Money.
Intuit’s non-GAAP operating income climbed 16% to $3.36 billion.
Balance Sheet and Cash Flow
As of Apr 30, 2023, Intuit’s cash and investments were $4.3 billion compared with $2.07 billion as of Jan 31, 2023.
The company exited the fiscal third quarter with long-term debt of $6.1 billion, down from the previous quarter’s $6.58 billion.
During the first nine months of fiscal 2023, the company generated $4.20 billion worth cash from operating activities.
Intuit repurchased stocks worth $483 million during the fiscal third quarter and had a remaining share-repurchase authorization of $2 billion at the end of the quarter. INTU announced that its board approved a quarterly cash dividend of 78 cents per share payable on Jul 18, 2023. The newly approved cash dividend represents a year-over-year increase of 15%.
Outlook
Intuit projects fiscal 2023 revenues in the band of $14.279-$14.317 billion, indicating 12-13% growth.
The company anticipates non-GAAP operating income between $5.441 billion and $5.461 billion, indicating approximate year-over-year growth of 21%.
Intuit’s fiscal 2023 non-GAAP earnings per share forecast stands between $14.20 and $14.25, suggesting year-over-year increase of 20%.
For the fiscal fourth quarter, INTU expects revenues to grow between 9% and 10% on a year-over-year basis. Adjusted earnings for the quarter are estimated in the range of $1.43-$1.48 per share.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 30.48% due to these changes.
VGM Scores
Currently, Intuit has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Intuit has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Intuit belongs to the Zacks Computer - Software industry. Another stock from the same industry, Synopsys (SNPS - Free Report) , has gained 7.8% over the past month. More than a month has passed since the company reported results for the quarter ended April 2023.
Synopsys reported revenues of $1.39 billion in the last reported quarter, representing a year-over-year change of +9%. EPS of $2.54 for the same period compares with $2.50 a year ago.
For the current quarter, Synopsys is expected to post earnings of $2.73 per share, indicating a change of +30% from the year-ago quarter. The Zacks Consensus Estimate has changed +0% over the last 30 days.
Synopsys has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.