Intuit Inc. (INTU Quick QuoteINTU ) is scheduled to release fourth-quarter fiscal 2021 results on Aug 24.
For the fiscal fourth quarter, Intuit projects revenues to be up between 26% and 28%, on a year-over-year basis. The Zacks Consensus Estimate for revenues is pegged at $2.32 billion, indicating year-over-year growth of 27.6%.
On a non-GAAP basis, Intuit now anticipates reporting earnings per share (EPS) of $1.55-$1.60. The consensus mark for earnings is pegged at $1.59 per share, suggesting a decline of 12.2% from the year-ago quarter.
Intuit’s earnings beat estimates in each of the trailing four quarters, the average surprise being 49.7%.
Intuit Inc. Price and EPS Surprise
Intuit Inc. price-eps-surprise | Intuit Inc. Quote
Let’s see how things have shaped up prior to the upcoming announcement.
Factors at Play
Intuit’s fiscal fourth-quarter performance is likely to have benefited from the extension of the tax filing deadline from Apr 15 to May 17, leading to a revenue shift from the fiscal third quarter to the soon-to-be-reported quarter. Notably, the Internal Revenue Service (IRS) had extended the deadline to help taxpayers navigate the unusual circumstances related to the pandemic.
The top line is likely to have been driven by solid growth in the Online Ecosystem, aided by an expanding subscriber base for Quickbooks Online. Notably, the Zacks Consensus Estimate for total Online Ecosystem revenues is pegged at $734 million for the quarter under review, indicating a 24.2% increase from the prior-year quarter’s reported figure. The consensus mark for QuickbooksOnline’s revenues is pinned at $454 million, suggesting a 23.6% improvement, year on year.
Furthermore, growth in the TurboTax Live offering is likely to have been accretive to the Consumer tax business during the fiscal fourth quarter, driven by growing customer engagement. The Zacks Consensus Estimate for revenues of $784 million from the Consumer tax business calls for growth of 10.4%, year over year.
Solid momentum of the company’s leading product, QuickBooks Capital, is a positive as well.
Moreover, gradual recovery in the Small Business and Self-Employed segment is likely to have been a tailwind for the top line during the quarter under review. Notably, the Zacks Consensus Estimate for Small Business revenues in the quarter stands at $1.17 billion, which indicates an 11.6% year-over-year increase.
Improving customer retention rates are also expected to have been a positive during the fiscal fourth quarter.
What Our Model Says
Our proven model does not predict an earnings beat for Intuit this time around. 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. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Intuit currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming releases:
KB Home (KBH Quick QuoteKBH ) has an Earnings ESP of +0.63% and carries a Zacks Rank #2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Chewy Inc. (CHWY Quick QuoteCHWY ) has an Earnings ESP of +20.00% and currently carries a Zacks Rank of 2.
AutoZone (AZO Quick QuoteAZO ) has an Earnings ESP of +9.54% and carries a Zacks Rank #2, at present.