Intuit: Strong Q3 Results Confirmed Structural Growth & Resilience

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

Summary

• Intuit shares are currently up 7.4% after reporting Q3 FY22 results overnight. They are still down 46% from their November peak.

• The Small Business & Self Employed segment saw revenues grow 20% organically year-on-year; Credit Karma revenues grew 48%.

• Intuit has seen little impact from macro headwinds, and its platform of mission-critical offerings should be resilient in any downturn.

• FY22 guidance was raised, with EPS growth now expected to be 20-21%. This implies a forward P/E multiple of just 33x.

• With shares at $385.23, we expect an exit price of $688 and a total return of 77% (20.9% annualized) by July 2025. Buy

Introduction

Intuit Inc. released Q3 FY22 results overnight (Tuesday, May 24). INTU shares are currently up 7.4% today at $385.23 (as of 12:15 pm EST).

Intuit shares have nearly halved (down 46%) since their peak in November 2021, though they have still gained 46% (including dividends) since our original initiation in September 2019.

Intuit is now back at 33x guided FY22 E…