Options trading activity for Intuit (INTU, Financial) has surged to 1.7 times its usual volume ahead of the company's upcoming earnings report, with a slight preference for call options over puts at a 10:9 ratio. The current implied volatility indicates that investors are expecting the stock to experience a movement of approximately 3.5%, equivalent to around $23.54, following the announcement of results. Historically, Intuit has experienced a median price change of 6.3% after earnings over the past two years.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 27 analysts, the average target price for Intuit Inc (INTU, Financial) is $703.34 with a high estimate of $785.00 and a low estimate of $530.00. The average target implies an upside of 5.97% from the current price of $663.75. More detailed estimate data can be found on the Intuit Inc (INTU) Forecast page.
Based on the consensus recommendation from 32 brokerage firms, Intuit Inc's (INTU, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Intuit Inc (INTU, Financial) in one year is $738.66, suggesting a upside of 11.29% from the current price of $663.75. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Intuit Inc (INTU) Summary page.
INTU Key Business Developments
Release Date: February 25, 2025
- Revenue: $4 billion, up 17% year-over-year.
- GAAP Operating Income: $593 million, up 61% from $369 million last year.
- Non-GAAP Operating Income: $1.3 billion, up 26% from $1 billion last year.
- GAAP Diluted Earnings Per Share (EPS): $1.67, up 34% from $1.25 a year ago.
- Non-GAAP Diluted EPS: $3.32, up 26% from $2.63 last year.
- Global Business Solutions Group Revenue Growth: 19% in Q2.
- QuickBooks Online Accounting Revenue Growth: 22% in Q2.
- Online Services Revenue Growth: 19% in Q2, or 30% excluding MailChimp.
- Total Online Payment Volume Growth: 18% in Q2.
- Consumer Group Revenue Growth: 3% in Q2.
- Credit Karma Revenue Growth: 36% in Q2.
- Cash and Investments: Approximately $2.5 billion.
- Debt: $6.3 billion on the balance sheet.
- Stock Repurchase: $721 million during the second quarter.
- Quarterly Dividend: $1.04 per share, a 16% increase per share versus last year.
- Fiscal 2025 Revenue Growth Guidance: 12 to 13%.
- Fiscal 2025 GAAP Operating Income Growth Guidance: 28 to 30%.
- Fiscal 2025 Non-GAAP Operating Income Growth Guidance: 13 to 14%.
- Fiscal 2025 GAAP EPS Growth Guidance: 18 to 20%.
- Fiscal 2025 Non-GAAP EPS Growth Guidance: 13 to 14%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Intuit Inc (INTU, Financial) reported a strong Q2 with a 17% revenue growth, showcasing robust performance across its business segments.
- The company is successfully executing its AI-driven expert platform strategy, enhancing customer experiences and operational efficiency.
- Intuit Assist, the AI-powered platform, is driving higher payment conversion rates and increased customer engagement.
- The integration of TurboTax and Credit Karma is yielding positive results, with a seamless customer experience and strong growth in Credit Karma revenue.
- Intuit Inc (INTU) is seeing significant traction in its mid-market segment, with QBO Advanced and Intuit Enterprise Suite contributing to strong ARPC growth.
Negative Points
- Despite strong overall performance, the ProTax group revenue declined by 1% in Q2.
- MailChimp's revenue growth is decelerating due to lapping of previous price changes, impacting overall online services growth.
- The company faces challenges in maintaining growth momentum in the desktop ecosystem, with expected low single-digit growth.
- Intuit Inc (INTU) is experiencing increased competition in the assisted tax filing segment, requiring continuous innovation and marketing efforts.
- There are concerns about potential risks associated with IRS initiatives, although the company remains confident in its ability to navigate these challenges.
