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Intuit (INTU) Q4 Earnings Surpass Estimates, Revenues Rise Y/Y

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Intuit (INTU - Free Report) reported fiscal fourth-quarter 2024 non-GAAP earnings of $1.99 per share, which beat the Zacks Consensus Estimate by 6.99%. The bottom line jumped 21% from the year-ago quarter.

Revenues of $3.18 billion beat the consensus mark by 3.23% and increased 17% 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 (80.3% of total revenues) grew 20% year over year to $2.55 billion. Within the segment, total Online Ecosystem revenues climbed 18% year over year to $1.8 billion. 

QuickBooks Online Accounting revenues were up 17% year over year to $895 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 19% year over year to $937 million. This was driven by strong performances of Mailchimp, QuickBooks Online Payroll and QuickBooks Online payments solutions.

Total international online revenues increased 13% year over year on a constant-currency basis. Total Desktop Ecosystem revenues rose 24.7% year over year during the reported quarter to $725 million. Revenues from Consumer Group (3.5% of total revenues) decreased 11.7% to $113 million. Further, ProTax Group's professional tax revenues (0.9% of total revenues) rose 3.5% year over year to $29 million.

The Credit Karma business contributed $485 million to Intuit’s fiscal fourth-quarter total revenues, which increased 14% year over year, driven by strength in Credit Karma Money, credit cards, auto insurance and personal loans. INTU’s non-GAAP operating income climbed 16% to $730 million. Non-GAAP operating margin contracted 20 basis points to 22.9% year over year.

Balance Sheet and Cash Flow

As of Jul 31, 2024, Intuit’s cash and investments were $4.1 billion compared with $4.7 billion as of Apr 30, 2024. The company exited the fiscal fourth quarter with a long-term debt of $5.539 billion.

Intuit repurchased $2 billion of stock during fiscal 2024. The board approved a new $3 billion repurchase authorization, giving the company a total authorization of $4.9 billion to repurchase shares.

INTU announced that its board approved a quarterly dividend of $1.04 per share to be paid on Oct 18, 2024. The newly approved dividend represents a year-over-year increase of 16%.

Outlook

For the fiscal first quarter of 2025, INTU expects revenues to grow between 5% and 6% on a year-over-year basis. Non-GAAP earnings for the quarter are estimated in the range of $2.33-$2.38 per share.

Intuit projects fiscal 2025 revenues in the band of $18.160-$18.347 billion, indicating 12-13% growth.

The company anticipates non-GAAP operating income between $7.241 billion and $7.316 billion.

Intuit expects fiscal 2024 non-GAAP earnings per share between $19.16 and $19.36.

Zacks Rank & Key Picks

Intuit carries a Zacks Rank #3 (Hold) at present. Shares of INTU have gained 9.2% in the year-to-date period.

Some better-ranked stocks from the broader Computer and Technology sector are Nutanix (NTNX - Free Report) , NVIDIA (NVDA - Free Report) and Dell Technologies (DELL - Free Report) . Nutanix sports a Zacks Rank #1 (Strong Buy), while NVIDIA and Dell Technologies carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Nutanix’s shares have gained 10.3% year to date. NTNX is set to report its fourth-quarter fiscal 2024 results on Aug 28.

NVIDIA’s shares have surged 151% year to date. NVDA is set to report its second-quarter fiscal 2025 results on Aug 28.

Dell Technologies’ shares have rallied 42.7% year to date. DELL is set to report its second-quarter fiscal 2025 results on Aug 25.


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