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Intuit (INTU) Q3 Earnings Beat Estimates, Revenues Rise Y/Y

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Intuit (INTU - Free Report) reported fiscal third-quarter 2024 non-GAAP earnings of $9.88 per share, which beat the Zacks Consensus Estimate by 5.78%. The bottom line jumped 11% from the year-ago quarter.

Revenues of $6.73 billion beat the consensus mark by 1.54% and increased 12% year over year.

Intuit Inc. Price, Consensus and EPS Surprise

Intuit Inc. Price, Consensus and EPS Surprise

Intuit Inc. price-consensus-eps-surprise-chart | Intuit Inc. Quote

Quarter Details

Small Business and Self-Employed Group revenues (35.4% of total revenues) grew 18% year over year to $2.38 billion.

Within the segment, total Online Ecosystem revenues climbed 19% year over year to $1.8 billion.

QuickBooks Online Accounting revenues were up 19% year over year to $860 million, driven primarily by customer growth, higher effective prices and a mix-shift to INTU’s full-service offering.

Online Services revenues, which include payroll, payments, time tracking and capital, jumped 20% year over year to $894 million. This was driven by strong performances of Mailchimp, QuickBooks Online Payroll and QuickBooks Online payments solutions.

Total international online revenues increased 12% year over year on a constant-currency basis.

Total Desktop Ecosystem revenues rose 14.5% year over year during the reported quarter to $633 million.

Revenues from Consumer Group (54.2% of total revenues) increased 9.3% to $3.65 billion.

Further, ProTax Group's professional tax revenues (3.8% of total revenues) rose 3.3% year over year to $254 million.

The Credit Karma business contributed $443 million to Intuit’s fiscal third-quarter total revenues, which increased 8% year over year, driven by strength in Credit Karma Money, credit cards, auto insurance and personal loans.

Intuit’s non-GAAP operating income climbed 10.5% to $3.71 billion. Non-GAAP operating margin contracted 70 basis points to 55.1% year over year.

Balance Sheet and Cash Flow

As of Apr 30, 2024, Intuit’s cash and investments were $4.7 billion compared with $1.48 billion as of Jan 31, 2024. The company exited the fiscal third quarter with a long-term debt of $5.952 billion.

Intuit repurchased $584 million of shares, with $2.1 billion remaining on the company's share repurchase authorization.

INTU announced that its board approved a quarterly dividend of 90 cents per share to be paid on Jul 18, 2024. The newly approved dividend represents a year-over-year increase of 15%.

Outlook

For the fiscal fourth quarter of 2024, INTU expects revenues to grow between 13% and 14% on a year-over-year basis to the band of $3.063-$3.099 billion. Non-GAAP earnings for the quarter are estimated in the range of $1.80-$1.85 per share.

The company anticipates fiscal fourth quarter non-GAAP operating income between $688 million and $708 million.

Intuit projects fiscal 2024 revenues in the band of $16.164-$16.2 billion, indicating 13% growth.

The company anticipates non-GAAP operating income between $6.36 billion and $6.38 billion.

Intuit expects fiscal 2024 non-GAAP earnings per share between $16.79 and $16.84.

Zacks Rank & Other Key Picks

Intuit carries a Zacks Rank #2 (Buy) at present. Shares of INTU have gained 6% in the year-to-date period.

Some other top-ranked stocks from the broader Computer and Technology sector are AppFolio (APPF - Free Report) , Arista Networks (ANET - Free Report) and Alphabet (GOOGL - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for AppFolio’s 2024 EPS has been revised upward by 13 cents to $3.97 in the past 30 days. Shares of APPF have surged 78.7% in the past year.

The Zacks Consensus Estimate for ANET’s 2024 EPS has been revised upward by 43 cents to $7.92 in the past 30 days. Shares of Arista Networks have surged 125.7% in the past year.

The Zacks Consensus Estimate for Alphabet’s 2024 EPS has been revised upward by 80 cents to $7.57 in the past 30 days. Shares of GOOGL have jumped 45.1% in the past year.


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