Intuit: Solid Q1 FY24, But Valuation Getting Stretched
Company Update (INTU US) (Buy)
Highlights
Intuit reported solid Q1 FY24 results on Tuesday (Nov 28)
SBSE revenues grew 17.9% and key trends were positive
FY24 guidance was reiterated, including a 12-14% EPS growth
At $574.32, the P/E is 40x relative to FY23 Non-GAAP EPS
We reiterate our Buy rating but are cautious about the near term
Introduction
Intuit reported Q1 FY24 (August-October 2023) results after markets closed on Tuesday (November 28). Shares have risen another 1.6% since then and are now up 45% in the past year:
Intuit Share Price (Last 1 Year)
Source: Google Finance (03-Dec-23).
Intuit shares have now gained 118% (including dividends) since we originally initiated our Buy rating in September 2019.
Q1 FY24 results were solid. Revenues grew by 17.9% in the key Small Business & Self-Employed segment, with growth in International Online revenues improving sequentially. Revenues fell by 4.7% in the smaller Credit Karma segment due to lower lender appetite following rate hikes. (The other two segments are seasonal and t…