Intuit, a standout among tech firms, surpassed expectations in its second-quarter 2024 earnings report with a non-GAAP profit of $2.63 per share, a staggering 14.85% over the Zacks Consensus Estimate. This solid performance marked a 19.5% leap from the same quarter last year.
The figures further paint a rosy picture as revenues hit $3.38 billion, edging past forecasts by 0.05% and reflecting a healthy 11.3% growth from the previous year.
Strong Quarter Performance
Intuit’s Small Business and Self-Employed Group, which accounts for 66.3% of overall revenues, showed robust resilience by surging 18.4% year over year to $2.24 billion. Notably, the total Online Ecosystem revenues soared by 20% to $1.68 billion, with QuickBooks Online Accounting revenues spiking by 19% to $826 million.
Simultaneously, Online Services revenues witnessed a 24% uptick year over year, driven by stellar performances from essential services like Mailchimp, QuickBooks Online payroll, and QuickBooks Online payments solutions.
While total international online revenues saw a 16% increase year over year on a constant-currency basis, the Consumer Group revenues slid by 4.7% to $492 million.
Financial Landscape and Future Projections
Intuit’s fiscal second-quarter showcased an impressive non-GAAP operating income growth of 16.8%, reaching $1 billion. Furthermore, the non-GAAP operating margin escalated by 140 basis points to 29.5% compared to the previous year.
Looking ahead, the company anticipates a revenue growth between 10% and 11% for the fiscal third quarter of 2024, with projected earnings ranging from $9.31 to $9.38 per share. The ambitious forecast extends to the fiscal year with revenue expectations in the range of $15.89-$16.105 billion, signaling an 11-12% growth.
Investor Insights and Key Picks
Despite carrying a Zacks Rank #4 (Sell), Intuit’s shares have soared by 28.1% since the beginning of the year. For investors seeking greener pastures, other notable contenders in the Computer and Technology sector like Agilent Technologies (A), ACM Research (ACMR), and Bandwidth (BAND) hold a Zacks Rank #2 (Buy).
Agilent Technologies, while seeing a modest decline in shares, is set to unveil its first-quarter results on Feb 27. Shares of ACM Research and Bandwidth have also seen slight decreases, with both firms expected to report their fourth-quarter 2023 results on Feb 28.
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