Earnings To Watch: Intuit (INTU) Reports Q2 Results Tomorrow

Kayode Omotosho /
2023/02/22 4:23 am EST
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Tax and accounting software provider, Intuit (NASDAQ:INTU) will be announcing earnings results tomorrow afternoon. Here's what you need to know.

Last quarter Intuit reported revenues of $2.6 billion, up 29.4% year on year, beating analyst revenue expectations by 3.89%. It was a slower quarter for the company, with a full year guidance missing analysts' expectations and a decline in gross margin.

Is Intuit buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Intuit's revenue to grow 8.87% year on year to $2.91 billion, slowing down from the 69.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.44 per share.

Intuit Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates three times over the last two years.

Looking at Intuit's peers in the finance and HR software segment, some of them have already reported Q2 earnings results, giving us a hint what we can expect. BlackLine delivered top-line growth of 21.4% year on year, beating analyst estimates by 0.22% and Paycor reported revenues up 28.9% year on year, exceeding estimates by 4.34%. BlackLine traded flat on the results, Paycor was up 2%. Read our full analysis of BlackLine's results here and Paycor's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 5.79% over the last month. Intuit is down 2.25% during the same time, and is heading into the earnings with analyst price target of $476.4, compared to share price of $392.5.

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The author has no position in any of the stocks mentioned.