Market Overview

A Preview Of Intuit's Earnings

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Intuit (NASDAQ: INTU) releases its next round of earnings this Thursday, November 19. Here is Benzinga's essential guide to Intuit's Q1 earnings report.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Intuit EPS will likely be near $0.37 while revenue will be around $1.21 billion, according to analysts. In the same quarter last year, Intuit reported EPS of $0.41 on revenue of $1.17 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The Wall Street consensus estimate for earnings would represent a 9.76% decrease for the company. Revenue would be have grown 3.86% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q4 2020 Q3 2020 Q2 2020 Q1 2019
EPS Estimate 1.05 5.48 1.03 0.25
EPS Actual 1.81 4.49 1.16 0.41
Revenue Estimate 1.57 B 3.34 B 1.68 B 1.12 B
Revenue Actual 1.82 B 3.00 B 1.70 B 1.17 B

Stock Performance

Shares of Intuit were trading at $358.75 as of November 17. Over the last 52-week period, shares are up 31.55%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Intuit is scheduled to hold the call at 16:30:00 ET and can be accessed here.

 

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Posted-In: Earnings