By Davit Kirakosyan
A Stifel analyst provided a company update on Intuit (NASDAQ:INTU) ahead of the upcoming Q4 earnings, scheduled to be reported on Aug 23.
The analyst expects the company to post at least in-line quarterly results, as C2Q SMB data points (Payroll-vendors, EVCM print, etc.) and inflation data were better than feared, serving to reduce concerns regarding Intuit's ability to sustain its double-digit revenue growth trajectory in coming quarters, resulting in gained stock momentum over the last few weeks.
For Q4, the analyst expects total revenue, operating income, and EPS of $2.353 billion (vs. consensus of $2.336 billion), $398.2 million (vs. consensus of $414.6 million), and $0.99 (vs. consensus of $1.03), respectively.
The analyst expects the company to guide to at least low double-digit organic revenue growth and operating margin expansion for 2023, as continued market share gains across its consumer and Small Business offerings, coupled with ARPU leverage stemming from improving mix shift across the portfolio, pricing actions within various products as well as accelerating services attach rates should help to offset potential economic headwinds.
Stifel raised its price target to $525 from $465, while reiterating its buy rating.