Intuit (INTU) Q2 Earnings Beat Estimates, Revenues Rise Y/Y

Intuit INTU reported fiscal second-quarter 2024 non-GAAP earnings of $2.63 per share, beating the Zacks Consensus Estimate by 14.85%. The bottom line jumped 19.5% from the year-ago quarter.

Revenues of $3.38 billion beat the consensus mark by 0.05% and increased 11.3% year over year.

Intuit Inc. Price, Consensus and EPS Surprise

Intuit Inc. Price, Consensus and EPS Surprise

Intuit Inc. price-consensus-eps-surprise-chart | Intuit Inc. Quote

Quarter Details

Small Business and Self-Employed Group revenues (66.3% of total revenues) grew 18.4% year over year to $2.24 billion.

Within the segment, total Online Ecosystem revenues climbed 20% year over year to $1.68 billion.

QuickBooks Online Accounting revenues were up 19% year over year to $826 million, driven primarily by customer growth, higher effective prices and a mix-shift to INTU’s full-service offering.

Online Services revenues, which include payroll, payments, time tracking and capital, jumped 24% year over year to $862 million. This was driven by strong performances of Mailchimp, QuickBooks Online payroll and QuickBooks Online payments solutions.

Total international online revenues increased 16% year over year on a constant-currency basis.

Total Desktop Ecosystem revenues rose 10% year over year during the reported quarter to $557 million.

Revenues from Consumer Group (14.5% of total revenues) decreased 4.7% to $492 million.

Further, ProTax Group's professional tax revenues (8.4% of total revenues) rose 8.3% year over year to $274 million, reflecting the timing of when tax forms were delivered. This is a driver for revenue recognition.

The Credit Karma business contributed $375 million to Intuit’s fiscal second-quarter total revenues, which remained flat year over year due to growth in Credit Karma Money, credit cards and auto loans, offset by a decline in home loans, personal loans and auto insurance.

Intuit’s non-GAAP operating income climbed 16.8% to $1 billion. Non-GAAP operating margin expanded 140 basis points to 29.5% year over year.

Balance Sheet and Cash Flow

As of Jan 31, 2024, Intuit’s cash and investments were $1.48 billion compared with $2.3 billion as of Oct 31, 2023.

The company exited the fiscal second quarter with long-term debt of $5.95 billion compared with $5.9 billion in the previous quarter.

Intuit repurchased $536 million of shares, with $2.7 billion remaining on the company's share repurchase authorization.

INTU announced that its board approved a quarterly dividend of 90 cents per share payable on Apr 18, 2024. The newly approved dividend represents a year-over-year increase of 15%.

Outlook

For the fiscal third quarter of 2024, INTU expects revenues to grow between 10% and 11% on a year-over-year basis in the band of $6.605-$6.655 billion. Non-GAAP earnings for the quarter are estimated in the range of $9.31-$9.38 per share.

The company anticipates fiscal third quarter non-GAAP operating income between $3.483 billion and $3.508 billion.

Intuit projects fiscal 2024 revenues in the band of $15.89-$16.105 billion, indicating 11-12% growth.

The company anticipates non-GAAP operating income between $6.155 billion and $6.26 billion.

Intuit expects fiscal 2024 non-GAAP earnings per share between $16.17 and $16.47.

Zacks Rank & Key Picks

Intuit carries a Zacks Rank #4 (Sell) at present. Shares of INTU have gained 28.1% in the year-to-date period.

Some better-ranked stocks from the broader Computer and Technology sector are Agilent Technologies A, ACM Research ACMR and Bandwidth BAND, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Agilent Technologies have lost 2.7% year to date. A is scheduled to release first-quarter 2024 results on Feb 27.

Shares of ACM Research have lost 2.1% year to date. ACMR is set to report its fourth-quarter 2023 results on Feb 28.

Shares of Bandwidth have lost 8.2% year to date. BAND is set to report its fourth-quarter 2023 results on Feb 28.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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