Intuit INTU is scheduled to report fourth-quarter fiscal 2024 results on Aug 22.
For the fourth quarter of fiscal 2024, INTU expects revenues to grow between 13% and 14% on a year-over-year basis to the band of $3.063-$3.099 billion.
The Zacks Consensus Estimate for revenues is pegged at $3.08 billion, indicating year-over-year growth of 13.73%.
On a non-GAAP basis, Intuit anticipates earnings per share in the range of $1.8-$1.85. The consensus mark for earnings is pegged at $1.86 per share, suggesting a year-over-year rise of 12.73%.
Intuit’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 16.24%.
Let’s see how things have shaped up before the announcement.
Intuit Inc. Price and EPS Surprise
Intuit Inc. price-eps-surprise | Intuit Inc. Quote
Factors to Note
Intuit’s fiscal fourth-quarter performance is expected to have benefited from the steady recovery in the Small Business and Self-Employed segment.
An expanding subscriber base for Quickbooks Online and ARPC is expected to have driven solid growth in the Online Ecosystem. Intuit announced new product innovations to better serve the accounting community and small business customers through its QuickBooks online ecosystem in the to-be-reported quarter.
In the fiscal fourth quarter, Intuit partnered with the Los Angeles Urban League and announced the expansion of the Intuit Invest, Develop, Empower, Accelerate and Scale (IDEAS) Program. The program, which began as a pilot in Los Angeles, will now expand to a total of 100 small business owners. In the first year, participants of the Intuit IDEAS Program experienced an average revenue growth of 23% and saved 16.5 hours per month.
The solid momentum of INTU’s leading product, QuickBooks Capital, and improving customer retention rates are anticipated to have acted as tailwinds in the quarter to be reported.
However, due to the ongoing macroeconomic volatility, Intuit’s business partners have been pulling back from extending their credit, risking credit performance deterioration in the near term.
This is expected to have led to modest growth in Credit Karma revenues in the quarter to be reported. The Credit Karma business contributed $443 million to Intuit’s fiscal third-quarter total revenues, which increased 8% year over year due to growth in Credit Karma Money, credit cards and auto loans.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Intuit this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
INTU currently has an Earnings ESP of 0.00% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks that, according to our model, have the right combination of elements to beat on earnings this season.
Abercrombie & Fitch ANF has an Earnings ESP of +5.40% and carries a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
Abercrombie & Fitch is slated to report its second-quarter 2024 results on Aug 28. The Zacks Consensus Estimate for the company’s earnings is pegged at $2.13 per share, which calls for a significant jump of 93.6% from the prior-year quarter’s reported figure. Shares of ANF have returned 73.5% in the year-to-date period.
Affirm AFRM has an Earnings ESP of +19.64% and a Zacks Rank #2 at present.
The company is scheduled to release fourth-quarter fiscal 2024 results on Aug 28. The Zacks Consensus Estimate for AFRM’s loss is pegged at 45 cents per share, narrower than the prior-year quarter’s loss of 69 cents. Shares of Affirm have plunged 45.9% in the year-to-date period.
American Eagle Outfitters AEO has an Earnings ESP of +1.97% and carries a Zacks Rank #2 at present.
The company is set to report second-quarter fiscal 2024 results on Aug 29. The Zacks Consensus Estimate for AEO’s earnings is pegged at 37 cents per share, which indicates growth of 48% from the year-ago quarter’s reported figure. Shares of American Eagle Outfitters have lost 2.5% in the year-to-date period.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Free: See Our Top Stock And 4 Runners UpAbercrombie & Fitch Company (ANF) : Free Stock Analysis Report
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Intuit Inc. (INTU) : Free Stock Analysis Report
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