Intuit (INTU) Reports Q3: Everything You Need To Know Ahead Of Earnings

Radek Strnad /
2023/05/22 3:02 am EDT

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

Last quarter Intuit reported revenues of $3.04 billion, up 13.8% year on year, beating analyst revenue expectations by 4.43%. It was a solid quarter for the company, with a decent beat of analyst estimates and a full year guidance beating analysts' expectations.

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 8.19% year on year to $6.09 billion, slowing down from the 35% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $8.49 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 twice over the last two years.

Looking at Intuit's peers in the finance and HR software segment, some of them have already reported Q3 earnings results, giving us a hint what we can expect. BlackLine delivered top-line growth of 15.6% year on year, beating analyst estimates by 0.57% and Bill.com reported revenues up 63.3% year on year, exceeding estimates by 10.3%. BlackLine traded up 8.14% on the results, Bill.com was up 11.4%. Read our full analysis of BlackLine's results here and Bill.com's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 3.39% over the last month. Intuit is up 0.95% during the same time, and is heading into the earnings with analyst price target of $480.2, compared to share price of $446.5.

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.