Intuit: Strong FY22 Finish & Reassuring FY23 Guidance

(Preview) Company Update (INTU US) (Buy)

Summary

• Intuit reported strong Q4 FY22 results overnight, sending shares up 6% this morning, but they are still down 14% from a year ago.

• Q4 was a strong finish to FY22, with full-year revenues growing 16% excluding recent acquisitions or 32% including them.

• New FY23 guidance implies another year of strong double-digit growth, including 14-16% in revenues and 15-17% in Non-GAAP EPS.

• Management also raised their long-term revenue growth target for the key Small Business segment by 5 ppt to 15-20%.

• With shares at around $476, we expect an exit price of $787 and a total return of 63% (14.5% annualized) by July 2026. Buy.

Introduction

Intuit Inc. released Q4 FY22 results overnight (Tuesday, August 23). INTU shares are up 6% this morning as of 11 am EST (at around $476).

We initiated our Buy rating on Intuit in September 2019. Shares have since gained 80% (including dividends) in just under three years, though the share price is currently down 14% from a year ago and 34% below its November peak

Ou…