Intuit (INTU) To Report Earnings Tomorrow: Here Is What To Expect

Adam Hejl /
2022/05/23 7:01 am EDT
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Tax and accounting software provider, Intuit (NASDAQ:INTU) will be reporting results tomorrow afternoon. Here's what investors should know.

Last quarter Intuit reported revenues of $2.67 billion, up 69.6% year on year, missing analyst expectations by 1.65%. Despite the solid revenue growth, it was a weaker quarter for the company, with a miss of the top line analyst estimates and full year guidance missing 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 32.1% year on year to $5.51 billion, slowing down from the 39% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $7.58 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 Q3 earnings results, giving us a hint of what we can expect. BlackLine delivered top-line growth of 21.6% year on year, beating analyst estimates by 0.55% and Avalara reported revenues up 33.1% year on year, exceeding estimates by 3.26%. BlackLine traded flat on the results, and Avalara was up 7.15%. Read our full analysis of BlackLine's results here and Avalara's results here.

There has been a stampede out of high valuation technology stocks and software stocks have not been spared, with share price down on average 17.5% over the last month. Intuit is down 17.4% during the same time, and is heading into the earnings with analyst price target of $582.8, compared to share price of $368.88.

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.