Intuit Earnings Anticipation: Will Traders Buy or Sell Ahead of Earnings Report?

Tax and accounting software leader, Intuit (NASDAQ:INTU), is set to unveil its earnings results this afternoon, and anticipation is high among traders and analysts alike. So, what can we expect?

In the previous quarter, Intuit managed to exceed revenue expectations by 3.5%, clocking in at an impressive $3.96 billion—a robust year-over-year increase of 17%. Nevertheless, the quarter was a mixed bag, showcasing a significant outperformance in EBITDA yet falling short on EPS guidance, leaving analysts with raised eyebrows.

As traders weigh their options heading into these results, the question arises: is it time to buy or sell Intuit? For those interested in an in-depth analysis, feel free to dive into our detailed report—we promise it’s on the house.

For this quarter, analysts are forecasting a revenue increase of 12.2%, projecting a total of $7.56 billion—easily comparable to the 11.9% uptick seen in the same quarter last year. Anticipated adjusted earnings are estimated to hit $10.91 per share. A glance at the past month reveals that experts have largely maintained their projections, signifying confidence in Intuit's steady trajectory leading into these earnings. However, it is essential to note that the company has, on three separate occasions in the last two years, fallen short of Wall Street's revenue expectations.

Turning our gaze to peers within the finance and HR software sphere, we can glean insights from recent Q1 reports. For instance, BlackLine reported a year-over-year revenue growth of 6%, aligning perfectly with what analysts predicted. Meanwhile, Flywire achieved a commendable revenue increase of 17%, surpassing expectations by 5%. Following these results, BlackLine's stock surged by 8.7%, while Flywire enjoyed a jump of 8.5%. Overall, investor sentiment in the finance and HR software sector is notably optimistic, with an average share price increase of 20.4% over the past month. Intuit itself has climbed 14.8% during this period and enters earnings with an analyst average price target of $699.34, strategically close to its current share price of $670.