Palantir ( PLTR ) is a company that the market sees a lot of potential in for a number of reasons. Among them, the acquisition of more customers and higher revenue per customer, enabled by its tools that add a lot ofEquity Research Analyst with a broad career in the financial market, covered both Brazilian and global stocks. As a value investor, my analysis is primarily fundamental, focusing on identifying undervalued stocks with growth potential. Feel free to reach out for collaborations or to connect!Anal ...

Intuit (INTU) reported fiscal second-quarter 2025 non-GAAP earnings of $3.32 per share, which beat the Zacks Consensus Estimate by 28.68%. The bottom line jumped 26% from the year-ago quarter.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Revenues of $3.96 billion beat the consensus mark by 3.67% and increased 17% year over year.Quarter DetailsGlobal Business Solutions Group revenues (67.39% of total revenues) grew 19% year over year to $2.67 billion.Within the segment, total Online ...

Intuit Inc. (NASDAQ: INTU ) got its start in 1983, back when personal finance mostly meant stacks of paper and a calculator. Since then, it has steadily grown into a major force in financial management software, best known for TurboTax, QuickBooks, Credit Karma, and Mailchimp, names that have becomeThe mission of Grassroots Trading rests on the following principles: providing objective, unbiased, and balanced research, backed by solid data and completely void of emotional influences or preference for compan ...

Intuit Inc. (NASDAQ:INTU) Q2 2025 Earnings Conference Call February 25, 2025 4:30 PM ET Company Participants Kim Watkins - Vice President, Investor Relations Sasan Goodarzi - Chief Executive Officer Sandeep Aujla - Chief Financial Officer Conference Call Participants Siti Panigrahi - Mizuho Kirk Materne - Evercore ISI Keith Weiss - Morgan Stanley Brent Thill - Jefferies Steve Enders - Citi Kash Rangan - Goldman Sachs Brad Sills - Bank of America Alex Markgraff - KeyBanc Capital Markets Taylor McGinnis - UBS ...

Intuit reported stronger-than-expected fiscal 2025 second-quarter results, fueled by robust segment growth and an AI-focused strategy.Intuit (INTU -2.05%), the financial software company best known for its QuickBooks and TurboTax products, reported its fiscal 2025 second-quarter results on Feb. 25. The company posted non-GAAP earnings per share (EPS) of $3.32, significantly surpassing the analysts' consensus of $2.57. Total revenue reached $3.96 billion, above the anticipated $3.83 billion. The quarter's pe ...

Company Performance - Intuit reported quarterly earnings of $3.32 per share, exceeding the Zacks Consensus Estimate of $2.58 per share, and up from $2.63 per share a year ago, indicating strong performance [1] - The earnings surprise for this quarter was 28.68%, following a previous surprise of 5.93% when earnings were $2.50 per share against an expectation of $2.36 [2] - Revenues for the quarter reached $3.96 billion, surpassing the Zacks Consensus Estimate by 3.67%, and up from $3.39 billion year-over-year [3] Future Outlook - The sustainability of Intuit's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [4] - Current consensus EPS estimate for the upcoming quarter is $11.56 on revenues of $7.52 billion, while for the current fiscal year, the estimate is $19.27 on revenues of $18.27 billion [8] Industry Context - The Computer - Software industry, to which Intuit belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, which may impact stock performance [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [6]

Financial Performance - Total net revenue for Q2 Fiscal 2025 reached $3,963 million, a 17% increase from $3,386 million in Q2 Fiscal 2024[11] - Service revenue contributed $3,249 million, up 20% from $2,693 million year-over-year, while product and other revenue slightly increased to $714 million from $693 million[11] - Operating income for the quarter was $593 million, representing a 60% increase compared to $369 million in the same quarter last year[11] - Net income for Q2 Fiscal 2025 was $471 million, a 33% increase from $353 million in Q2 Fiscal 2024[11] - Basic net income per share rose to $1.68, up from $1.26 in the prior year, while diluted net income per share increased to $1.67 from $1.25[11] - For the six months ended January 31, 2025, net income increased to $668 million, compared to $594 million for the same period in 2024, reflecting a growth of approximately 12.5%[20] - The company reported a comprehensive income of $461 million for the three months ended January 31, 2025, compared to $371 million for the same period in 2024, indicating an increase of approximately 24.3%[18] - For the three months ended January 31, 2025, net income was $471 million, compared to $353 million for the same period in 2024, representing a 33.5% increase[39] - Basic net income per share for the three months ended January 31, 2025, was $1.68, up from $1.26 in the same period of 2024, reflecting a 33.3% increase[39] Assets and Liabilities - Total current assets decreased to $9,135 million from $9,678 million as of July 31, 2024, primarily due to a reduction in cash and cash equivalents[15] - Total assets decreased to $31,682 million from $32,132 million, reflecting a decline in investments and cash reserves[15] - Total liabilities remained relatively stable at $13,733 million compared to $13,696 million in the previous period[15] - Cash, cash equivalents, restricted cash, and restricted cash equivalents at the end of the period were $5,342 million, up from $4,441 million at the end of January 31, 2024, representing a year-over-year increase of approximately 20.3%[21] - The balance of common stock increased to $20,995 million as of January 31, 2025, from $19,739 million as of January 31, 2024, reflecting an increase of about 6.4%[18] - The balance of retained earnings increased to $17,059 million as of January 31, 2025, from $15,140 million as of January 31, 2024, representing a growth of about 12.7%[18] Cash Flow and Investments - Total cash provided by operating activities for the six months ended January 31, 2025, was $1,431 million, significantly higher than $516 million for the same period in 2024[20] - Total adjustments to reconcile net income to net cash provided by operating activities amounted to $1,318 million for the six months ended January 31, 2025, compared to $1,141 million for the same period in 2024, indicating an increase of about 15.5%[20] - The company repurchased $1,274 million in treasury stock during the six months ended January 31, 2025, compared to $1,135 million in the same period of 2024, marking an increase of approximately 12.3%[21] - The company declared dividends totaling $596 million for the six months ended January 31, 2025, compared to $516 million for the same period in 2024, reflecting an increase of approximately 15.5%[21] - The company reported share-based compensation expense of $1,009 million for the six months ended January 31, 2025, compared to $970 million for the same period in 2024, indicating an increase of about 4%[20] Revenue Segments - The Global Business Solutions segment reported net revenue of $2,671 million for the three months ended January 31, 2025, up 19% from $2,245 million in the same period last year[151] - QuickBooks Online Accounting generated $1,008 million in net revenue for the three months ended January 31, 2025, a 22% increase from $826 million in the same period last year[151] - Credit Karma's net revenue increased to $511 million for the three months ended January 31, 2025, compared to $375 million for the same period in 2024, marking a 36% growth[151] - Total service revenue for fiscal 2024 was $13.9 billion, representing 85% of total revenue, with expectations for long-term growth in this percentage[180] - Online Ecosystem revenue increased by $350 million, or 21%, in Q2 fiscal 2025 compared to the same period in fiscal 2024[201] Strategic Focus and Future Outlook - The company expects to continue investing significantly in product development and marketing, particularly in artificial intelligence capabilities[9] - Intuit anticipates that total service revenue as a percentage of total revenue will grow over the long term, indicating a strategic focus on service-oriented offerings[9] - The company is evaluating the impact of new accounting standards on its consolidated financial statements, effective for fiscal years beginning after December 15, 2023[43] - The seasonal pattern of revenue is heavily concentrated from November through April, resulting in higher net revenues during the second and third quarters[29] Restructuring and Expenses - The company recorded restructuring costs estimated at approximately $236 million, with a $13 million charge recorded during the six months ended January 31, 2025[152] - Expenses increased due to marketing, outside services, staffing, and share-based compensation, impacting operating income growth[187] - The company reorganized technology and customer success functions across segments to enhance overall platform management[27] Credit and Financing - The company has commitments to sell a minimum of approximately $8 million monthly and $350 million cumulatively in participation interests in unsecured term loans to small businesses over four years, with remaining monthly commitments totaling $225 million through July 31, 2027[78] - The 2024 Credit Facility allows for an increase in commitments up to $1 billion and includes a $500 million sublimit for swingline loans and a $250 million sublimit for letters of credit[95] - As of January 31, 2025, the company was compliant with all covenants of the 2024 Credit Facility, with no amounts outstanding and no interest paid during the six months ended January 31, 2025[96]

Revenue Growth - Total revenue for Q2 FY25 reached $4.0 billion, representing a 17% increase year-over-year[2] - Global Business Solutions Group revenue grew to $2.7 billion, up 19%, with Online Ecosystem revenue increasing to $2.0 billion, up 21%[7] - Credit Karma revenue surged 36% to $511 million, driven by strong performance in credit cards, personal loans, and auto insurance[8] - The company expects full fiscal year 2025 revenue guidance of $18.160 billion to $18.347 billion, reflecting growth of approximately 12% to 13%[10] - The company projects revenue for the three months ending April 30, 2025, to be between $7,550 million and $7,600 million[48] Earnings Performance - GAAP operating income rose to $593 million, a 61% increase, while Non-GAAP operating income grew to $1.3 billion, up 26%[4] - GAAP diluted earnings per share increased to $1.67, up 34%, and Non-GAAP diluted earnings per share grew to $3.32, up 26%[4] - GAAP diluted earnings per share for the full year is projected to be between $12.34 and $12.54, indicating growth of approximately 18% to 20%[10] - Operating income for the twelve months ending July 31, 2025, is estimated to be between $4,649 million and $4,724 million[48] - Diluted net income per share for the twelve months ending July 31, 2025, is projected to be between $12.34 and $12.54[48] Shareholder Returns - Intuit plans to repurchase $3.6 billion worth of shares, having already repurchased $721 million in Q2 FY25[10] - A quarterly dividend of $1.04 per share has been approved, representing a 16% increase compared to the same period last year[10] Tax and Compensation - The company recognized excess tax benefits on share-based compensation of $29 million for the three months ended January 31, 2025, compared to $56 million for the same period in 2024[25] - The effective tax rate for the three months ended January 31, 2025, was approximately 17%, while the effective tax rate excluding discrete tax items was around 24%[26] - Total share-based compensation expense for the six months ended January 31, 2025, was $1,009 million, an increase from $970 million in the same period of 2024[25] - The company’s share-based compensation expense for the fiscal year 2024 totaled $1,915 million, reflecting a consistent investment in employee compensation[37] - The long-term non-GAAP tax rate is set at 24% for fiscal years 2024 and 2025, subject to change due to significant acquisitions or tax law changes[63] Financial Position - Total assets decreased from $32,132 million as of July 31, 2024, to $31,682 million as of January 31, 2025, representing a decline of 1.4%[41] - Net income for the six months ended January 31, 2025, was $668 million, an increase of 12.5% compared to $594 million for the same period in 2024[43] - Cash flows from operating activities increased significantly to $1,431 million for the six months ended January 31, 2025, compared to $516 million for the same period in 2024[43] - Total current liabilities decreased from $7,491 million as of July 31, 2024, to $7,179 million as of January 31, 2025, a reduction of 4.2%[41] - The company reported a net cash used in financing activities of $2,499 million for the six months ended January 31, 2025, compared to a net cash provided of $833 million in the same period in 2024[44] Non-GAAP Measures - Non-GAAP operating income for the fiscal year 2025 was projected to be $2,213 million, compared to $6,402 million for the full fiscal year 2024[32] - The company reported a GAAP operating income of $864 million for the fiscal year 2025, down from $3,630 million in fiscal year 2024[32] - Non-GAAP financial measures exclude credit losses on available-for-sale debt securities and gains and losses on other investments[62] - Operating results from discontinued operations are segregated from continuing operations in GAAP statements but included in GAAP net income[64] - The reconciliation of forward-looking non-GAAP financial measures to GAAP measures includes adjustments that can be reasonably predicted, such as acquisitions and divestitures[65] Future Outlook - The company anticipates continued double-digit revenue growth and margin expansion for the fiscal year[7] - The company continues to monitor changes in corporate tax laws that may impact its financial reporting and tax strategy[28]

Core Insights - Intuit Inc. is set to release its second-quarter financial results on February 25, with expected earnings of $2.58 per share, a decrease from $2.63 per share in the same quarter last year [1] - The company anticipates quarterly revenue of $3.83 billion, up from $3.39 billion a year earlier [1] - On November 21, 2024, Intuit provided adjusted EPS and revenue guidance that fell below analyst expectations [1] Stock Performance - Intuit shares increased by 0.3%, closing at $567.24 on Monday [2] Analyst Ratings - Jefferies analyst Brent Thill maintained a Buy rating and raised the price target from $790 to $800 [4] - Oppenheimer analyst Scott Schneeberger maintained an Outperform rating and increased the price target from $712 to $722 [4] - Stifel analyst Brad Reback maintained a Buy rating but reduced the price target from $795 to $725 [4] - JP Morgan analyst Mark Murphy maintained a Neutral rating and raised the price target from $600 to $640 [4] - Barclays analyst Raimo Lenschow maintained an Overweight rating and cut the price target from $800 to $775 [4]

Core Viewpoint - Wall Street analysts have rerated Intuit Inc ahead of its quarterly earnings report, with JP Morgan analyst Mark R Murphy maintaining a Neutral rating, citing improved valuation risk/reward due to the stock's pullback [1] Group 1: Earnings and Valuation - The stock has traded at a lower level than it did 3.5 years ago, which has improved the valuation risk/reward perspective [1] - TurboTax is a key focus for investors as the tax season approaches, with the company expressing confidence about the upcoming season [3] Group 2: Tax Filing Deadline Impact - The IRS has deferred the tax filing deadline from April to October for those affected by California wildfires, which may create short-term noise and defer some revenue from Q3 [2] Group 3: Competitive Concerns - There are emergent concerns regarding DOGE-related initiatives that could negatively impact TurboTax, although these concerns are currently conceptual [3] Group 4: Historical Guidance and Market Sentiment - Historically, Intuit has not raised fiscal guidance after the second quarter due to tax season volatility [4] - Investor sentiment on the macroeconomic environment has trended positively despite elevated inflation and interest rates [5] Group 5: Visitor Traffic Data - TurboTax's unique visitor traffic showed 164.4% sequential growth in Q2 of fiscal 2025 compared to 165.2% in Q2 of fiscal 2024 [5] - QuickBooks experienced a significant improvement in unique visitor traffic with 14.6% sequential growth in Q2 of fiscal 2025 versus 6.0% in Q2 of fiscal 2024 [6] - Credit Karma's unique visitor traffic declined with -5.9% sequential growth in Q2 of fiscal 2025 compared to 7.3% in Q4 of fiscal 2024 [7]