Intuit stock price forecast ahead of Q2 earnings

The Intuit (NASDAQ: INTU) stock price is hovering near its all-time high ahead of its second-quarter earnings that will come out after the regular session on Tuesday. The stock is trading at $552, which is about 50% above where it started the year at. It has risen by almost 200% from its lowest level in 2020, bringing its total market capitalization to more than $150 billion.

Intuit earnings preview

Intuit is a leading fintech company that is best known for its QuickBooks, TurboTax, and Mint products. QuickBooks is one of the leading accounting software in the world while TurboTax helps people file their taxes. Mint is a financial product that helps people to budget. 

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Intuit has been experiencing strong growth recently. Indeed, its annual revenue has jumped from more than $4.6 billion in 2016 to more than $7.6 billion. It is also a highly profitable company that generates almost $2 billion in annual profit.

Data compiled by SeekingAlpha shows that analysts expect the company to release revenue of $2.32 billion. This will be substantially lower than the first-quarter revenue of more than $4 billion. This is understandable because the company’s Turbo Tax product sees more activity during the tax filing season in the first quarter. 

The revenue will be substantially higher than the $1.5 billion it published in the same quarter in 2020. Its earnings-per-share is expected to come in at $1.59, which will be lower than the previous $6.0. Intuit will likely beat the analysts’ forecasts considering that more than 87% of all US companies published strong results. 

The results will be notable because they come after the company decided to end its free tax filing program that was used by millions of Americans. The program was part of a private-public partnership that allowed people earning below $72,000 to file their taxes for free.

Analysts are generally bullish on the Intuit stock price. Those at Barclays expect that it will rise to $634 while those at Jefferies and Mizuho expect it to rise to more than $630 and $550.

Intuit stock price forecast

The daily chart shows that the Intuit stock price has been on a strong bullish trend in the past few years. Along the way, the shares have moved above the 25-day and 50-day moving averages while oscillators like the Relative Strength Index (RSI) and MACD have been on an upward trend. 

Therefore, while Intuit will likely publish strong results, there is a possibility that its stock will have a pullback on profit taking.

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