Software giant Intuit (INTU) will release its Q4 2024 financials on August 22. Analysts forecast that the company will report diluted earnings per share of $1.85, up 12% from the same quarter last year. Also, analysts expect revenues of $3.08 billion, reflecting a 14% year-over-year decrease, according to TipRanks’ data.
Interestingly, Intuit has maintained a strong record of earnings surprises, surpassing estimates in each of the last nine quarters. INTU stock is up 37% over the past year and 7% year-to-date.
Insights from the TipRanks Bulls & Bears Tool
According to TipRanks’ Bulls Say, Bears Say tool pictured below, bulls are confident that Intuit’s strategic reorganization, with a focus on AI investments, could result in modest margin expansion. Analysts also believe that Intuit’s product-focused investments will likely drive consistent outperformance in both revenue and earnings.
Meanwhile, bears contend that uncertainties in TurboTax (Intuit’s tax-filing software) growth and macro challenges in the Small Business segment may pressure Intuit’s valuation. Additionally, the restructuring, including 1,800 layoffs and facility closures, adds to their concerns.
What Do Options Traders Anticipate?
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 5.49% move in either direction.
Is INTU a Good Stock to Buy Now?
Overall, the Street has a Moderate Buy consensus rating on Intuit stock, alongside an average price target of $707.70. However, analysts’ views on the stock may change once the company reports its Q4 earnings tomorrow.
