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Intuit (INTU - Free Report) 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.
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.
Image: Bigstock
Intuit (INTU) Q2 Earnings Beat Estimates, Revenues Rise Y/Y
Intuit (INTU - Free Report) 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-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 - Free Report) , ACM Research (ACMR - Free Report) and Bandwidth (BAND - Free Report) , 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.