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Intuit (INTU) Readies to Report Q1 Earnings: What's in Store?

Intuit Inc. INTU is slated to release first-quarter fiscal 2022 results on Nov 18.

For the fiscal first quarter, Intuit projects revenue growth between 36% and 38% on a year-over-year basis. The Zacks Consensus Estimate for revenues is pegged at $1.81 billion, indicating year-over-year growth of 37%.

On a non-GAAP basis, Intuit anticipates earnings per share (EPS) of 94-99 cents. The consensus mark for earnings is pegged at 97 cents, suggesting a year-over-year improvement of 3.2%.

Intuit’s earnings beat estimates in each of the trailing four quarters, the average surprise being 43.3%.

Let’s see how things have shaped up before the upcoming announcement.

Intuit Inc. Price and EPS Surprise

 

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

Factors to Consider

Intuit’s first-quarter revenues are likely to have been driven by solid growth in the Online Ecosystem, aided by an expanding subscriber base for Quickbooks Online. The Zacks Consensus Estimate for total Online Ecosystem revenues is pegged at $770 million for the quarter under review, indicating a 24% increase from the prior-year quarter’s reported figure. The consensus mark for QuickbooksOnline’s revenues is pinned at $480 million, suggesting a 22.4% improvement year on year.

Furthermore, growth in the TurboTax Live offering is likely to have been accretive to the Consumer tax business during the fiscal first quarter, driven by the growing customer engagement. The Zacks Consensus Estimate for revenues of $133 million from the Consumer tax business calls for growth of 11.8% year over year.

Moreover, the gradual recovery in the Small Business and Self-Employed segment is likely to have been a tailwind for the top line during the quarter under review. The Zacks Consensus Estimate for Small Business revenues in the quarter stands at $1.32 billion, indicating an 11.6% year-over-year increase.

The solid momentum of INTU’s leading product, QuickBooks Capital, is a positive. Also, the improving customer retention rates are expected to have been a positive during the fiscal first quarter.

Additionally, revenue contribution from the recently acquired Credit Karma business has likely boosted overall sales during the first quarter. The Zacks Consensus Estimate for Credit Karma’s revenues is pinned at $336 million. The business unit contributed $405 million to Intuit’s fourth-quarter fiscal 2021 total revenues. However, higher costs and expenses due to the increased investments in marketing and engineering teams are expected to have negatively impacted INTU’s bottom-line performance.

What Our Model Says

Our proven model predicts an earnings beat for Intuit this time. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Intuit currently carries a Zacks Rank of 3 and has an Earnings ESP of +1.87%.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Some Other Stocks With Favorable Combinations

Per our model, Macy’s M, BellRing Brands BRBR and Applied Materials AMAT also have the right combination of elements to post an earnings beat in their upcoming releases.

Macy’s carries a Zacks Rank #1 and has an Earnings ESP of +9.77%. The company is scheduled to report third-quarter fiscal 2022 results on Nov 18. Macy’s’ earnings have surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 269.8%.

The Zacks Consensus Estimate for Macy’s’ third-quarter earnings is pegged at 31 cents per share, indicating year-over-year growth of 263.2%. The consensus mark for revenues is pinned at $5.29 billion, reflecting a year-over-year increase of 32.6%.

BellRing Brands is slated to report fourth-quarter fiscal 2021 results on Nov 18. The stock carries a Zacks Rank #2 and has an Earnings ESP of +14.11% at present. BellRing Brands’ earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 23.2%.

The Zacks Consensus Estimate for quarterly earnings is pegged at 27 cents per share, suggesting a year-over-year improvement of 8%. BellRing Brands’ quarterly revenues are estimated to increase 27.5% year over year to $360.2 million.

Applied Materials currently carries a Zacks Rank #2 and has an Earnings ESP of +0.52%. The semiconductor company is scheduled to report fourth-quarter fiscal 2021 results on Nov 18. Applied Materials’ earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 8.1%.

The Zacks Consensus Estimate for Applied Materials’ fourth-quarter earnings is pinned at $1.94 per share, reflecting a year-over-year jump of 55.2%. AMAT is estimated to report revenues of $6.33 billion, which signifies an increase of 35.1% from the year-ago quarter.


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Macy's, Inc. (M): Free Stock Analysis Report
 
Intuit Inc. (INTU): Free Stock Analysis Report
 
Applied Materials, Inc. (AMAT): Free Stock Analysis Report
 
BellRing Brands, Inc. (BRBR): Free Stock Analysis Report
 
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