Tax and accounting software provider, Intuit (NASDAQ:INTU) will be reporting results tomorrow after the bell. Here's what investors should know.
Last quarter Intuit reported revenues of $5.63 billion, up 34.9% year on year, beating analyst revenue expectations by 2.16%. It was a very strong quarter for the company, with a significant improvement in gross margin and a solid top line growth.
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 decline 9.03% year on year to $2.32 billion, a further deceleration on the 41% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.98 per share.
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 Q4 earnings results, giving us a hint of what we can expect. BlackLine delivered top-line growth of 25.8% year on year, beating analyst estimates by 1.52% and Avalara reported revenues up 23.3% year on year, missing analyst estimates by 0.28%. BlackLine traded up 5.57% on the results, and Avalara was flat on the results. Read our full analysis of BlackLine's results here and Avalara's results here.
There has been positive sentiment among investors in the software segment, with the stocks up on average 5.34% over the last month. Intuit is up 7.18% during the same time, and is heading into the earnings with analyst price target of $528.6, compared to share price of $456.82.
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The author has no position in any of the stocks mentioned.