Intuit INTU shares have declined 1.5% year to date (YTD) against the broader Zacks Computer and Technology sector’s increase of 27%.

It has also lagged the Zacks Computer Software industry and peers like Progress Software PRGS, SS&C Technologies SSNC and Trend Micro TMICY. 

Shares of PRGS and SSNC have returned 20.4% and 16%, respectively, while TMICY has declined 0.9% at the same time. The industry has appreciated 15% YTD.

The company recently announced a Venture investment in Wildfire’s Series B round, co-led by Intuit and Mucker Capital in an attempt to aid the company’s near-term prospects and drive the stocks higher.

Wildfire is a fin-tech platform that enhances loyalty and provides reward programs, monetization as well as shopping companions. This enables consumers to avail rewards amid persistent inflation. 

Intuit’s strategic investment will aid in creating a network of consumers without building a direct merchant infrastructure and network.

Intuit Inc. Price and Consensus

Intuit Inc. price-consensus-chart | Intuit Inc. Quote

Intuit’s investment will assist in developing new features to increase benefit and value for Wildfire’s customers.

Will Intuit’s Gen AI Aid Prospects?

Intuit’s investment in Gen AI capabilities enables it to be a market driver by digitalizing financial processes for enterprises and individual users to organize operations by making the process quick and efficient. 

Intuit Assist, for instance, provides customer-specific financial insights using AI and has more than one million users. INTU’s Enterprise Suite, for larger enterprises, focuses on synergizing multiple complex segments to drive the top line. 

However, higher costs and expenses driven by increased investments in marketing and engineering teams are negatively impacting bottom-line results. Selling and marketing expenses increased 14% in fiscal 2024 to $4.31 billion.  

Further, INTU’s balance sheet is highly leveraged. Debt amounted to $6 billion, and cash and cash equivalent was $3.6 billion as of July 31, 2024.

INTU’s Near-Term Earnings Estimates Gloomy

The Zacks Consensus Estimate for first-quarter 2025 earnings is currently pegged at $2.36 against year-ago quarter earnings of $2.47 per share, indicating a year-over-year decline of 4.45%. This has remained unchanged in the past 30 days.

Intuit’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 13.09%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Intuit projects fiscal 2025 revenues in the band of $18.16-$18.34 billion, indicating 12-13% growth. In fiscal 2024, Intuit generated total revenues of $16.3 billion.   

For the fiscal first quarter of 2025, INTU expects revenues to grow between 5% and 6% on a year-over-year basis. 

The consensus mark for first-quarter 2025 revenues is pegged at $3.14 billion, indicating year-over-year growth of 3.48%. 

Intuit expects fiscal 2025 non-GAAP earnings between $19.16 and $19.36 per share.

Non-GAAP earnings for first-quarter fiscal 2025 are estimated in the range of $2.33-$2.38 per share.