Yahoo Finance Intuit (INTU) to Report Q2 Earnings: What's in the Offing?
Intuit INTU is scheduled to report second-quarter fiscal 2024 results on Feb 22.
The company projects year-over-year revenue growth of 11-12% to $3.362-$3.392 billion for the fiscal second quarter.
The Zacks Consensus Estimate for revenues is pegged at $3.39 billion, indicating year-over-year growth of 11.36%.
On a non-GAAP basis, Intuit anticipates earnings per share in the range of $2.25-$2.31. The consensus mark for earnings is pegged at $2.29 per share, suggesting a year-over-year rise of 4.09%.
Intuit’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 25.93%.
Let’s see how things have shaped up before the announcement.
Intuit Inc. Price and EPS Surprise
Intuit Inc. price-eps-surprise | Intuit Inc. Quote
Factors to Note
Intuit’s fiscal second-quarter performance is expected to have benefited from steady recovery in the Small Business and Self-Employed segment.
An expanding subscriber base for Quickbooks Online and ARPC is expected to have driven solid growth in the Online Ecosystem. In the fiscal second quarter, Intuit announced a global QuickBooks brand platform, Business Differently, which is focused on reaching the growing population of solopreneur small business owners.
The Online Ecosystem is likely to have boosted overall sales in the fiscal second quarter. Intuit announced new product innovations to better serve the accounting community and small business customers through its QuickBooks online ecosystem in the to-be-reported 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 quarter under review.
However, due to the ongoing macroeconomic volatility, Intuit’s 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 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.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Intuit this season. 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. However, that’s not the case here.
INTU currently has an Earnings ESP of 0.00% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases.
The Gap GPS has an Earnings ESP of +24.44% and sports a Zacks Rank #1 at present. You can find the complete list of today’s Zacks #1 Rank stocks here.
The Gap is set to announce fourth-quarter 2023 results on Mar 7. The Zacks Consensus Estimate for GPS’ earnings is pinned at 19 cents per share. The company had incurred a loss of 75 cents per share in the year-ago quarter.
Eldorado Gold EGO has an Earnings ESP of +5.88% and a Zacks Rank #2 at present.
Eldorado Gold is set to announce fourth-quarter 2023 results on Feb 22. The Zacks Consensus Estimate for EGO’s earnings is pinned at 21 cents per share, indicating growth of 50% from the year-ago quarter’s figure.
Booking Holdings BKNG has an Earnings ESP of +2.07% and a Zacks Rank #3 at present.
Booking Holdings is scheduled to release fourth-quarter 2023 results on Feb 22. The Zacks Consensus Estimate for BKNG’s earnings is pegged at $29.69 per share, suggesting a jump of 20% from the prior-year quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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The Gap, Inc. (GPS) : Free Stock Analysis Report
Intuit Inc. (INTU) : Free Stock Analysis Report
Eldorado Gold Corporation (EGO) : Free Stock Analysis Report
Booking Holdings Inc. (BKNG) : Free Stock Analysis Report
