Intuit Inc. Poised for Strong Q3 Earnings Report on May 22

Intuit Inc. (INTU), with a market cap of $157 billion, is a key player in financial management, compliance, and marketing services in the U.S. The company is headquartered in Mountain View, California, and operates through four main segments: Small Business & Self-Employed, Consumer, Credit Karma, and ProTax. Its Q3 earnings report is set to be released on Thursday, May 22.

Analysts Predict Significant Earnings Growth

Before the earnings announcement, analysts forecast that INTU will report a profit of $9.63 per share. This represents an 11.6% increase from the $8.63 per share reported in the same quarter last year. Notably, the company has outperformed analysts’ earnings estimates for the past four quarters. In the last quarter, INTU reported an EPS of $2.07, exceeding consensus estimates by an impressive 63%, driven by strong revenue growth across its segments.

Future Earnings Outlook Looks Bright

For the current fiscal year, analysts anticipate INTU will report EPS of $14.14, translating to a 21.8% rise from the $11.61 reported in fiscal 2024. Furthermore, projections indicate a continued upward trend, with expected earnings of $16.11 per share in fiscal 2026, marking a year-over-year increase of 13.9%.

Stock Performance and Market Comparison

Over the past year, INTU shares have fallen slightly, underperforming against the S&P 500 Index ($SPX), which saw a 9.4% increase, as well as the Technology Select Sector SPDR Fund (XLK), with returns of 5.5% during the same period.

Analyst Ratings and Future Potential

Recently, INTU stock gained over 1% in pre-market trading following an upgrade by HSBC, moving its rating from “Hold” to “Buy” while maintaining a price target of $699 as of April 23. The consensus among analysts remains strongly optimistic, with an overall “Strong Buy” rating. Out of 29 analysts, 24 recommend a “Strong Buy,” one suggests a “Moderate Buy,” three rate it as a “Hold,” and one advises a “Strong Sell.” The average price target of $716.78 suggests a considerable 14.8% upside from current price levels.

On the date of publication, Kritika Sarmah did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, please view the Barchart Disclosure Policy here.

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