Tax and accounting software provider, Intuit (NASDAQ:INTU) will be reporting results tomorrow after the bell. Here’s what investors should know.
Intuit beat analysts’ revenue expectations by 3.1% last quarter, reporting revenues of $3.18 billion, up 17.4% year on year. It was a mixed quarter for the company: Intuit beat analysts’ expectations across the board. On the other hand, its gross margin declined and its billings missed Wall Street’s estimates.
Is Intuit a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Intuit’s revenue to grow 5.4% year on year to $3.14 billion, slowing from the 14.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.36 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Intuit has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Intuit’s peers in the finance and HR software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. BlackLine delivered year-on-year revenue growth of 10.1%, beating analysts’ expectations by 1.7%, and Bill.com reported revenues up 17.5%, topping estimates by 3.3%. BlackLine traded up 1.4% following the results while Bill.com was also up 17.6%.
Read our full analysis of BlackLine’s results here and Bill.com’s results here.
There has been positive sentiment among investors in the finance and HR software segment, with share prices up 11.8% on average over the last month. Intuit is up 5.8% during the same time and is heading into earnings with an average analyst price target of $719.59 (compared to the current share price of $644.90).
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