Intuit Inc. (NASDAQ:INTU) shareholders are probably feeling a little disappointed, since its shares fell 8.2% to US$607 in the week after its latest third-quarter results. Intuit reported US$6.7b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$8.42 beat expectations, being 7.2% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Intuit after the latest results.
Taking into account the latest results, the current consensus from Intuit's 26 analysts is for revenues of US$18.2b in 2025. This would reflect a solid 15% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to expand 13% to US$12.39. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$18.0b and earnings per share (EPS) of US$12.13 in 2025. So the consensus seems to have become somewhat more optimistic on Intuit's earnings potential following these results.
There's been no major changes to the consensus price target of US$699, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Intuit analyst has a price target of US$760 per share, while the most pessimistic values it at US$520. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Intuit's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 12% growth on an annualised basis. This is compared to a historical growth rate of 19% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 13% annually. Factoring in the forecast slowdown in growth, it looks like Intuit is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Intuit's earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Intuit going out to 2026, and you can see them free on our platform here.
It might also be worth considering whether Intuit's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.