One of the top financial software providers, Intuit, is known for making money management chores easier. Its clientele includes individuals, small enterprises, and independent contractors. Among its offerings are Mailchimp, Credit Karma, QuickBooks, and TurboTax.
INTU's Performance Looks Potent
Once the market ends on November 21, Intuit Inc will release its fiscal 2025 first-quarter results. Let's examine INTU's fiscal 2024 performance, what analysts predict for this period, and whether the company is a good investment.
Intuit's revenue climbed 13% yearly to $16.3 billion in fiscal 2024. The business is divided into three categories, with the biggest revenue increase, 19%, reported by small companies and the self-employed.
Over the year, QuickBooks Online's financial revenue rose by 17% in this category. Additionally, management reported that "increases in purchases, payroll, funding, and Mailchimp" were the main drivers of the 21% rise in e-commerce revenue.
One of the main forces behind growth is still the small business environment. With Intuit growing its ecosystem to encompass payroll, payment processing, and other business administration products, QuickBooks especially has seen significant popularity.
Intuit's Earnings Overview
Despite Intuit's existing market dominance in the United States, expanding internationally is a substantial growth possibility. The business has invested in adapting its solutions to the demands of clients worldwide. The 13% rise in foreign internet revenue for the fiscal year 2024 indicates this. At $16.94, the adjusted profit per share (EPS) rose 18%.
The business ended the quarter with $6 billion in loans and $4.1 billion in liquidity and investments. Despite the debt, Intuit has been able to return investments to shareholders thanks to its steady earnings growth. In fiscal year 2024, the corporation bought back $2 billion shares.
It reported raising its quarterly dividend by 16% to $1.04 per share in the fourth fiscal quarter. Compared to the tech sector's median yield of 1.3%, INTU's yield of 0.63% is not very attractive. However, income-seeking shareholders might find its rapid dividend hikes appealing. During the past twelve years, its dividends have grown.
Its forecast dividend payout ratio of 21.5% is very modest, suggesting that dividend payments are currently growth-friendly and sustainable.
Intuit's Growth factor
The majority of industries have benefited from AI. Thanks to artificial intelligence integration, TurboTax can now offer tailored tax advice, while QuickBooks helps companies automate forecasting and bookkeeping processes.
Intuit's wide range of products allows cross-selling. For instance, a QuickBooks user might find that Credit Karma offers financial data while Mailchimp helps with marketing.
INTU's Earnings Forecast
Intuit expects revenue growth of 5% to 6% for the first fiscal quarter of 2025, owing to average increases in the Self-Employed and Small Business Groups. Conversely, adjusted profits per share might drop from $2.47 to $2.33 to $2.38. Management's forecasts and analysts' estimations for this period are in agreement.
Nonetheless, the business anticipates robust growth in the 2025 fiscal year. Earnings could rise by 13% to 14% after revenue grows by 12% to 13%.
Analysts forecast revenue to rise 12.1% to $18.2 billion in fiscal year 2025, followed by earnings to rise 14.1%. In fiscal year 2026, revenue and earnings are anticipated to rise by 12.3% and 15%, respectively. The price of Intuit's shares, which is 35 times its estimated earnings for the fiscal year 2025, is high.
Intuit Stock (INTU) Technical Analysis
In the daily chart of INTU stock price, the overall market momentum is bullish, where the recent price trades above the dynamic 50 day EMA line.
On the other hand, the moving Average wave remains below the current price and works as a major support zone. Primarily, investors might expect the bullish trend to continue as long as the current price hovers above the MA wave.
On the bullish side, investors should monitor how the Intuit stock price trades after the triangle breakout. A downside correction with a bullish reversal from the 630.00 to 601.00 zone could be a high probable long opportunity, aiming for the 760.00 area. However, an extended selling pressure with a daily close below the 600.00 psychological line might lower the price towards the 550.00 area.
