Intuit's Q1 Earnings Surpass Estimates, Revenues Rise Y/Y

Intuit INTU reported first-quarter fiscal 2025 non-GAAP earnings of $2.5 per share, which beat the Zacks Consensus Estimate by 5.93%. The bottom line jumped 1.2% from the year-ago quarter.

Intuit’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 13.09%.

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Revenues of $3.28 billion beat the consensus mark by 4.58% and increased 10% year over year.

Quarter Details

Global Business Solution revenues (77.49% of total revenues) grew 8.53% year over year to $2.54 billion, beating the Zacks Consensus Estimate by 1.62%. Within the segment, total Online Ecosystem revenues climbed 20% year over year to $1.94 billion. 

QuickBooks Online Accounting revenues were up 21% year over year to $965 million, driven primarily by customer growth, higher effective prices and a mix-shift to INTU’s full-service offering, beating the Zacks Consensus Estimate by 1.15%.

Online Services revenues, which include payroll, payments, time tracking and capital, jumped 19% year over year to $978 million. This was driven by a strong performance from Mailchimp, payroll and money offering.

Intuit Inc. Price, Consensus and EPS Surprise

Intuit Inc. price-consensus-eps-surprise-chart | Intuit Inc. Quote

Total international online revenues increased 10% year over year on a constant-currency basis. 

Total Desktop Ecosystem revenues declined 17% year over year during the reported quarter to $601 million, beating the Zacks Consensus Estimate by 3.24%.

Revenues from the Consumer Group (5.36% of total revenues) decreased 5.9% to $176 million, beating the Zacks Consensus Estimate by 2.81%. 

Further, ProTax Group's professional tax revenues (1.19% of total revenues) declined 7.14% year over year to $39 million, beating the Zacks Consensus Estimate by 0.47%.

The Credit Karma business contributed $524 million to Intuit’s fiscal first-quarter total revenues, which increased 29.38% year over year, beating the Zacks Consensus Estimate by 22.34%. The increase was driven by strength in credit card verticals, auto insurance and personal loans.

INTU’s non-GAAP operating income declined 1% to $953 million. Non-GAAP operating margin contracted 320 basis points to 29% year over year.

Balance Sheet and Cash Flow

As of Oct. 31, 2024, Intuit’s cash and investments were $3.4 billion compared with $4.1 billion as of July 31, 2024. 

The company exited the fiscal first quarter with a long-term debt of $5.625 billion.

Intuit repurchased $570 million of stock during the first quarter of fiscal 2025, with $4.3 billion remaining in total share repurchase authorization.

INTU announced that its board approved a quarterly dividend of $1.04 per share, to be paid on Jan. 17, 2025. The newly approved dividend represents a year-over-year increase of 16%.

Outlook

For the second quarter of fiscal 2025, INTU expects revenues to grow between 13% and 14% on a year-over-year basis in the range of $3.812 billion and $3.845 billion. Non-GAAP earnings for the quarter are estimated in the range of $2.55-$2.61 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 3.4% in the year-to-date period compared with the Zacks Computer – Software industry’s return of 16.5%.

Some better-ranked stocks from the broader Computer and Technology sector are Fortinet FTNT, Meta Platforms META and Reddit Inc. RDDT. Fortinet sports a Zacks Rank #1 (Strong Buy), while Meta Platforms and Reddit Inc. carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Fortinet shares have returned 60.7% in the year-to-date period.

The Zacks Consensus Estimate for the company’s long-term earnings is pegged at $17.8 per share. 

Meta Platforms shares have returned 58.7% in the year-to-date period.

The Zacks Consensus Estimate for the company’s long-term earnings is pegged at $20.1 per share. 

Reddit Inc. shares have returned 213.3% in the year-to-date period.

The Zacks Consensus Estimate for the company’s long-term earnings is pegged at $36 per share.

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