Intuit (INTU) Q1 Earnings: What To Expect

Jabin Bastian /
2022/11/28 4:09 am EST

Tax and accounting software provider, Intuit (NASDAQ:INTU) will be reporting earnings tomorrow after market hours. Here's what to look for.

Last quarter Intuit reported revenues of $2.41 billion, down 5.73% year on year, beating analyst revenue expectations by 3.61%. It was a weak quarter for the company, with underwhelming guidance for the next year and declining revenue.

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 24.5% year on year to $2.49 billion, slowing down from the 51.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.20 per share.

Intuit Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing four upwards revisions over the last thirty days. 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 Q1 earnings results, giving us a hint of what we can expect. BlackLine delivered top-line growth of 22.7% year on year, beating analyst estimates by 0.07% and Paylocity reported revenues up 39.3% year on year, exceeding estimates by 5.65%. Both companies (BlackLine and Paylocity) traded flat on the results. Read our full analysis of BlackLine's results here and Paylocity's results here.

The technology sell-off has been putting pressure on stocks since November and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 7.03% over the last month. Intuit is down 8.47% during the same time, and is heading into the earnings with analyst price target of $508.70, compared to share price of $391.25.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

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