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Intuit (INTU) Up 9% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Intuit (INTU - Free Report) . Shares have added about 9% 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 reported fiscal first-quarter 2024 non-GAAP earnings of $2.47 per share, beating the Zacks Consensus Estimate by 24.75%. The bottom line jumped 48.8% from the year-ago quarter.
Revenues of $2.97 billion beat the consensus mark by 3.6% and increased 15% year over year.
Quarter in Detail
Small Business and Self-Employed Group revenues grew 18% year over year to $2.34 billion.
Within the segment, total Online Ecosystem revenues grew 20% year over year to $1.61 billion. QuickBooks Online Accounting revenues were up 19.5% year over year to $798 million. Online Services revenues, which include payroll, payments, time tracking and capital, grew 20.4% year over year to $820 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 16% year over year on a constant-currency basis.
Total Desktop Ecosystem revenues grew 13.6% year over year during the reported quarter to $726 million.
In the fiscal first quarter, revenues from Consumer Group increased 24.7% to $187 million. The increase in Consumer Group revenues reflects a strong finish to the tax extension season. The company saw stronger-than-expected tax return volume from states both with and without extended tax deadlines.
Further, ProTax Group's professional tax revenues increased by 23.5% year over year to $42 million.
The Credit Karma business contributed $405 million to Intuit’s fiscal first-quarter total revenues, down 4.7% year over year due to headwinds in personal loans, auto insurance, home loans and auto loans, partially offset by growth in credit cards and Credit Karma Money.
Intuit’s non-GAAP operating income climbed 45% to $960 million. Non-GAAP operating margin expanded 670 basis points to 32.2% year over year.
Balance Sheet and Cash Flow
As of Oct 31, 2023, Intuit’s cash and investments were $2.3 billion compared with $3.6 billion as of Jul 31, 2023.
The company exited the fiscal first quarter with long-term debt of $5.9 billion compared with $6.12 billion in the previous quarter. Intuit repaid the $4.2 billion outstanding on its unsecured term loan on Sep 15.
Intuit repurchased $603 million of shares, with $3.2 billion remaining on the company's share repurchase authorization.
INTU announced that its board approved a quarterly dividend of 90 cents per share payable on Jan 18, 2023. The newly approved dividend represents a year-over-year increase of 15%.
Outlook
For the fiscal second quarter of 2024, INTU expects revenues to grow between 11% and 12% on a year-over-year basis in the band of $3.362-$3.392 billion. Non-GAAP earnings for the quarter are estimated in the range of $2.25-$2.31 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -16.86% due to these changes.
VGM Scores
At this time, Intuit has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward 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 is part of the Zacks Computer - Software industry. Over the past month, Autodesk (ADSK - Free Report) , a stock from the same industry, has gained 14.6%. The company reported its results for the quarter ended October 2023 more than a month ago.
Autodesk reported revenues of $1.41 billion in the last reported quarter, representing a year-over-year change of +10.5%. EPS of $2.07 for the same period compares with $1.70 a year ago.
Autodesk is expected to post earnings of $1.95 per share for the current quarter, representing a year-over-year change of +4.8%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Autodesk. Also, the stock has a VGM Score of D.
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Intuit (INTU) Up 9% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Intuit (INTU - Free Report) . Shares have added about 9% 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 Q1 Earnings Beat Estimates, Revenues Rise Y/Y
Intuit reported fiscal first-quarter 2024 non-GAAP earnings of $2.47 per share, beating the Zacks Consensus Estimate by 24.75%. The bottom line jumped 48.8% from the year-ago quarter.
Revenues of $2.97 billion beat the consensus mark by 3.6% and increased 15% year over year.
Quarter in Detail
Small Business and Self-Employed Group revenues grew 18% year over year to $2.34 billion.
Within the segment, total Online Ecosystem revenues grew 20% year over year to $1.61 billion. QuickBooks Online Accounting revenues were up 19.5% year over year to $798 million. Online Services revenues, which include payroll, payments, time tracking and capital, grew 20.4% year over year to $820 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 16% year over year on a constant-currency basis.
Total Desktop Ecosystem revenues grew 13.6% year over year during the reported quarter to $726 million.
In the fiscal first quarter, revenues from Consumer Group increased 24.7% to $187 million. The increase in Consumer Group revenues reflects a strong finish to the tax extension season. The company saw stronger-than-expected tax return volume from states both with and without extended tax deadlines.
Further, ProTax Group's professional tax revenues increased by 23.5% year over year to $42 million.
The Credit Karma business contributed $405 million to Intuit’s fiscal first-quarter total revenues, down 4.7% year over year due to headwinds in personal loans, auto insurance, home loans and auto loans, partially offset by growth in credit cards and Credit Karma Money.
Intuit’s non-GAAP operating income climbed 45% to $960 million. Non-GAAP operating margin expanded 670 basis points to 32.2% year over year.
Balance Sheet and Cash Flow
As of Oct 31, 2023, Intuit’s cash and investments were $2.3 billion compared with $3.6 billion as of Jul 31, 2023.
The company exited the fiscal first quarter with long-term debt of $5.9 billion compared with $6.12 billion in the previous quarter. Intuit repaid the $4.2 billion outstanding on its unsecured term loan on Sep 15.
Intuit repurchased $603 million of shares, with $3.2 billion remaining on the company's share repurchase authorization.
INTU announced that its board approved a quarterly dividend of 90 cents per share payable on Jan 18, 2023. The newly approved dividend represents a year-over-year increase of 15%.
Outlook
For the fiscal second quarter of 2024, INTU expects revenues to grow between 11% and 12% on a year-over-year basis in the band of $3.362-$3.392 billion. Non-GAAP earnings for the quarter are estimated in the range of $2.25-$2.31 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -16.86% due to these changes.
VGM Scores
At this time, Intuit has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward 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 is part of the Zacks Computer - Software industry. Over the past month, Autodesk (ADSK - Free Report) , a stock from the same industry, has gained 14.6%. The company reported its results for the quarter ended October 2023 more than a month ago.
Autodesk reported revenues of $1.41 billion in the last reported quarter, representing a year-over-year change of +10.5%. EPS of $2.07 for the same period compares with $1.70 a year ago.
Autodesk is expected to post earnings of $1.95 per share for the current quarter, representing a year-over-year change of +4.8%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Autodesk. Also, the stock has a VGM Score of D.