Intuit Inc. (NASDAQ:INTU) will announce its third-quarter, fiscal year 2014 financial results on May 20 following the close of market. On the same day, Intuit executives will discuss the financial results on a conference call at 1:30 p.m. Pacific time.
Wall Street anticipates that application software maker will earn $3.50 per share for the quarter, which is $0.53 more than last year's profit of $2.97 per share. iStock expects INTU to top Wall Street's consensus number, the iEstimate is $3.54.
Sales, like earnings and taxes, are expected to trend climb, increasing 9.2% year-over-year (YoY). Intuit's consensus revenue estimate for Q3 is $2.38 billion, which is more than last year's $2.18 billion.
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Intuit Inc. (Intuit) is a provider of business and financial management solutions for small businesses, consumers, accounting professionals and financial institutions. The Company organizes its portfolio of businesses into four principal categories: Small Business Group, Tax, Financial Services and Other Businesses.
Business owners might be familiar with the company because of QuickBooks and individual taxpayers due to TurboTax.
The third quarter is lopsided for Intuit as it includes tax-season, which makes Q3 by far the most important earnings announcement of the year for Intuit. To give you a sense of how important, the full-year 2014 consensus, earnings-per-share (EPS) estimate is $3.58, of which $3.50 is expected to be announced on Tuesday afternoon. That's 97.78% of profit for the entire year.
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Considering the supersized importance of the quarter, iStock looked at the previous four third quarter earnings announcements to see if there are any observable trends. Intuit delivered four straight bullish surprises for the emerald month earning $0.02, $0.04, $0.04, and $0.07 more than expected, from the most recent backwards.
Despite getting by Wall Street's outlook, shares backpedalled three of the last four quarter, falling -3.3%, gaining 1.2%, losing -2.8% and -3.50%; again, from the most recent.
Now that we have a sense of what might happen to the stock price, let's examine some data to see what earnings might look like versus the consensus. According to IRS.gov, the number of Self-prepared E-filings (electronic filings) increased 6.5% in 2014 relative to 2013. Leaders like TurboTax tend to outperform the group as a whole.
We also see YoY improvement for Google Trends for the keywords "QuickBooks" as search volume intensity (SVI) moved higher by 5.3%. However, "TurboTax" was flat in 2014 compared to 2013.
Overall: IRS data on E-Filers, the iEstimate, and Intuit Inc.'s (NASDAQ:INTU) third quarter history suggest another bullish surprise is in store; however, Google Trends hint that top line numbers could be a little disappointing, which would make for another poor Q3 stock outing.
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