Breaking Barriers and Setting Records
Intuit, the tax and financial software behemoth, has rewritten the narrative of success with its outstanding performance in the last year. Its growth trajectory over the past two decades has left its competitors in the dust, establishing a track record that speaks volumes about its potential longevity in the industry. With the stage set for Intuit to potentially reach new all-time highs, investors are eager to witness the outcome of its Q3 FY24 results announcement on May 23.
Essentials and Expansion
Intuit’s TurboTax software revolutionized the realm of financial management and contributed significantly to its exponential revenue growth. From humble beginnings with sales under $1 billion in the late 1990s, the company has surged to over $14 billion in FY23. Leveraging the pandemic-induced digital acceleration, Intuit diversified its software offerings into various consumer finance sectors like email marketing and digital advertising. With a customer base exceeding 100 million across multiple platforms, Intuit has firmly established its foothold in the economy.
Anticipating Growth
Projections suggest that Intuit is on track to maintain its streak of double-digit revenue expansion, with anticipated revenue growth of 12% in both FY24 and FY25. Forecasts indicate a revenue surge from $14.37 billion in FY23 to $18.00 billion in FY25. Furthermore, Intuit’s expected earnings per share growth of 14% in 2024 and an additional 15% in the following year positions it as a strong contender for investors seeking growth opportunities.
Performance and Potential
Intuit’s meteoric rise in the tech sector over the past 20 years, surpassing giants like Microsoft and Apple, underscores its competitive edge and resilience. Trading above its moving averages, Intuit’s technical levels indicate a potential breakout to new records, contingent on favorable guidance in the upcoming report. Despite trading at a premium of 51.7X forward 12-month earnings, Intuit’s consistent growth trajectory and Wall Street’s confidence in its future prospects justify the valuation.
The Verdict
With a substantial share repurchase plan and overwhelming brokerage support, Intuit continues to inspire investor confidence. A 15% dividend boost in FY24, though modest, signals Intuit’s commitment to shareholder value amidst its stellar growth. As Intuit’s journey unfolds, investors are presented with a unique opportunity to partake in the success story of a company that shows no signs of slowing down.