Intuit (INTU) Fiscal 2025 Guidance More Forward Looking Better For Stock Price

Market analysts are overwhelmingly bullish toward Intuit (INTU) fiscal fourth-quarter earnings report. it is better-positioned than its peers due to several factors, including its resilient tax and small business segments and its dependable history of dividend growth. Indeed, INTU has been one of the best dividend stocks, having increased its payout for 12 straight years.

Analysts are expecting INTU to report fiscal fourth-quarter earnings of $1.85 per share (+11.5% YoY) on revenue of $3.1 billion (+13.7% YoY). This might represent a small earning beat and also a more conservative fiscal 2025 guidance expected.

INTU is expected to report higher fourth-quarter revenue, helped by growing demand for its software solutions to manage financial needs. Investors will be looking for commentary about Intuit's "do-it-yourself" users and if TurboTax price increases is affecting any business for the company.

INTU primary target customers are small businesses, consumers, and accounting professionals. The markets in which we compete have always been characterized by rapid technological change, shifting customer needs, and frequent new product introductions and enhancements by competitors.

Over the past several years, the widespread availability of the Internet, mobile devices, and the explosion of social media have accelerated the pace of change and revolutionized the way that customers learn about, evaluate, and purchase products and services.

Real-time, personalized online and mobile shopping experiences are rapidly becoming the standard. In addition, many customers now begin shopping in one channel and ultimately purchase in another. This creates a need for integrated, multi-channel, shop-and-buy experiences. Market and industry changes quickly make existing products and services obsolete.

INTU success depends on their ability to respond rapidly to these changes with new business models, updated competitive strategies, new or enhanced products and services, alternative distribution methods and other changes in the way we do business.

I am expecting INTU to introduce AI into their software as the taxation sector are also moving into the AI space.

Intuit Inc's Corporate Customers have recorded an increase in their cost of revenue by 12.59 % in the 1 quarter 2024 year on year, sequentially costs of revenue were trimmed by -5.17 %.

During the corresponding time, Intuit Inc recorded revenue increase by 11.95 % year on year, sequentially revenue grew by 98.97 %. While revenue at the Intuit Inc 's corporate clients recorded rose by 18.51 % year on year, sequentially revenue grew by 1.54 %.

I am expecting the revenue to increase further for Q2 coming from corporate customers, but we should see some news from INTU to get into the AI space for this tax software provider.

The year-to-date returns of 7% I would consider to be a bit low, as there is much potential as corporate move towards digitalization for the tax returns matters.

So Intuit (INTU) software is in a good position to start small business to move into taxation preparation automation.

I would expect INTU to make a significant move post earnings and also I foresee an increase in the dividend as well.

Based on 21 Wall Street analysts offering 12 month price targets for Intuit in the last 3 months. The average price target is $721.59 with a high forecast of $770.00 and a low forecast of $585.00. The average price target represents a 7.62% change from the last price of $670.49.

As mentioned above, I am expecting INTU to perform than its peers and competitors as they are better-positioned to move their software into the automation, and I am looking forward to see AI being introduced in INTU software.

Market is feeling positive ahead of INTU earnings as we have seen nice upside movement for past week, and MACD is showing an upward trend.

KDJ is currently on upward trend, though J value tend to trend a bit lower, so I would expect small price dip today (22 Aug) before the earnings, that might present an opportunity for me to look at entering.

I would be watching the price action closely to see how investors are feeling about this stock.

I feel that INTU would be making a significant upside post earnings but that would depend on the earnings beat as a small beat is expected, could the guidance for 2025 change from conservative to more positive?

If that happen we might see a good movement in INTU stock.

Appreciate if you could share your thoughts in the comment section whether you think INTU would provide a larger earning beat and more positive guidance for its software, TurboTax. AI maybe would be mentioned as well for this software?

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.