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Intuit (INTU) to Report Q3 Earnings: What's in The Cards?

Zacks Equity Research
·4-min read

Intuit Inc. INTU is slated to release third-quarter fiscal 2022 results on May 24.

For the fiscal third quarter, Intuit projects year-over-year revenue growth of 32-33%. The Zacks Consensus Estimate for revenues is pegged at $5.52 billion, indicating year-over-year growth of 32.2%.

On a non-GAAP basis, Intuit anticipates reporting earnings per share in the range of $7.51-$7.57. The consensus mark for earnings stands at $7.60 per share, suggesting a year-over-year improvement of 25.2%.

Intuit’s earnings beat estimates in each of the trailing four quarters, the average surprise being 16.7%.

Intuit Inc. Price and EPS Surprise

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

Factors to Note

Intuit’s third-quarter revenues are likely to reflect solid growth in the Online Ecosystem, driven by an expanding subscriber base for Quickbooks Online and ARPC. The Zacks Consensus Estimate for total Online Ecosystem revenues is pegged at $1.16 billion for the quarter under review, indicating a 68.1% increase from the prior year's reported figure. The consensus mark for Quickbooks Online revenues stands at $625 million, suggesting a 47.1% improvement year over year.

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The gradual recovery in the Small Business and Self-Employed might have contributed to the top line during the quarter under review. The Zacks Consensus Estimate for Small Business revenues in the quarter stands at $1.61 billion, which indicates a 43.1% year-over-year increase.

The growth in the TurboTax Live offering is likely to have been accretive to the Consumer tax business during the fiscal third quarter, driven by growing customer engagement. The Zacks Consensus Estimate for the Consumer tax business’ revenues is pegged at $3.24 billion, suggesting growth of 14.3% year over year.

Revenues from the Credit Karma business (acquired in December 2020) are likely to have boosted overall sales during the third quarter. The Zacks Consensus Estimate for Credit Karma revenues stands at $368 million. The business unit contributed $444 million to INTU’s second-quarter fiscal 2022 total revenues.

The solid momentum of the company’s leading product, QuickBooks Capital, and improving customer retention rates might have acted as tailwinds in the fiscal third quarter.

However, the transition of Desktop Ecosystem offerings into a subscription model is anticipated to have hurt the sales growth.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for INTU this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here.

Intuit currently has a Zacks Rank of 4 (Sell) and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Per our model, Star Bulk Carriers SBLK, Costco Wholesale COST and The Nautilus Group NLS have the right combination of elements to post an earnings beat in their upcoming releases.

Star Bulk has a Zacks Rank #1 and an Earnings ESP of +1.77%. The company is scheduled to report first-quarter 2022 results on May 24. It has surpassed the Zacks Consensus Estimate for earnings in two of the trailing four quarters and missed twice, the average negative surprise being 1.99%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for SBLK’s first-quarter earnings is pegged at $1.41 per share, suggesting year-over-year growth of 291.7%. The consensus mark for revenues stands at $338.6 million, indicating an increase of 200.5% year over year.

Costco is slated to report third-quarter fiscal 2022 results on May 26. The stock has a Zacks Rank #2 and an Earnings ESP of +1.90%. Its earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 13.3%.

The Zacks Consensus Estimate for COST’s quarterly earnings is pegged at $3.04 per share, suggesting a year-over-year improvement of 10.6%. Its quarterly revenues are estimated to increase 14.3% year over year to $51.76 billion.

The Nautilus has a Zacks Rank #2 and an Earnings ESP of +1.10%. The company is scheduled to report fourth-quarter fiscal 2022 results on May 23. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 21.5%.

The Zacks Consensus Estimate for NLS’ fourth-quarter bottom line is pegged at a loss of 61 cents per share, suggesting year-over-year decline of 164.9%. The consensus mark for revenues stands at $121.4 million, indicating a slump of 41.1% from the year-ago quarter.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Costco Wholesale Corporation (COST) : Free Stock Analysis Report

Intuit Inc. (INTU) : Free Stock Analysis Report

Nautilus Group, Inc. The (NLS) : Free Stock Analysis Report

Star Bulk Carriers Corp. (SBLK) : Free Stock Analysis Report

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Zacks Investment Research