Intuit INTU is scheduled to report second-quarter fiscal 2025 results on Feb. 25.

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

For the second quarter of fiscal 2025, INTU expects revenues to grow between 13% and 14% on a year-over-year basis to the range of $3.812 billion and $3.845 billion. 

The Zacks Consensus Estimate for revenues is pegged at $3.83 billion, indicating year-over-year growth of 12.993%.

On a non-GAAP basis, Intuit anticipates earnings per share in the range of $2.55-$2.61. The consensus mark for earnings is pegged at $2.59 per share, suggesting a year-over-year decline of 1.52%.

Intuit’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 8.39%.

Let’s see how things have shaped up before the announcement.

Factors to Note

Intuit faces mixed dynamics heading into its second-quarter fiscal 2025 earnings, suggesting investors may want to hold current positions or wait for a more attractive entry point. While the company's fundamentals remain solid, several factors could put pressure on results.

In its second-quarter guidance, Intuit projected revenue growth of 13-14% but notably warned of an expected single-digit decline in Consumer Group revenues due to promotional changes in retail channels related to its desktop offering. Though management emphasized that this only impacts revenue timing rather than full-year expectations, it might have weighed on second-quarter performance.

The company's Online Ecosystem revenue growth showed strength, accelerating to 20% in the first quarter of fiscal 2025 from 18% in the fourth quarter of fiscal 2024. This momentum in the core QuickBooks franchise was driven by customer growth, higher effective prices, and continued mix-shift toward higher-end offerings. The mid-market expansion through QuickBooks Advanced and Enterprise Suite also demonstrated robust 42% growth.

Credit Karma's 29% revenue growth in the first quarter marked strong execution across personal loans, auto insurance, and credit card verticals. However, it remains to be seen if the growth rate has been sustained this time around, given the macroeconomic environment and lending conditions.

Mailchimp has been facing some headwinds from higher churn among smaller customers, though management has addressed this through product enhancements. The company noted it could take a few quarters to show improved outcomes at scale, potentially impacting near-term growth.

While Intuit's long-term story remains compelling with its AI-driven platform strategy and massive $300B+ TAM opportunity, the current valuation appears to price in much of the optimism. The stock trades at a premium multiple, reflecting strong execution but leaving limited room for disappointment.

Additionally, the company's Desktop Ecosystem transition and promotional changes create some uncertainty around the second-quarter results despite management's confidence in full-year targets. Given these factors, investors may benefit from a wait-and-see approach before earnings while maintaining existing positions in this quality franchise.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Intuit this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.

INTU currently has an Earnings ESP of 0.00% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some stocks that, according to our model, have the right combination of elements to beat on earnings this season.

Marvell Technology MRVL currently has an Earnings ESP of +2.77% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

MRVL shares have declined 3.6% year to date. Marvell Technology is set to report fourth-quarter fiscal 2025 results on March 5.

NCR Voyix Corporation VYX has an Earnings ESP of +142.86% and currently carries a Zacks Rank #3.

NCR Voyix shares have plunged 11.2% year to date. VYX is slated to report its fourth-quarter 2024 results on Feb. 27.

Amer Sports, Inc. AS has an Earnings ESP of +6.56% and a Zacks Rank #2 at present.

AS shares have returned 4.9% year to date. Amer Sports is scheduled to report its fourth-quarter 2024 results on Feb. 25.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Intuit Inc. (INTU) : Free Stock Analysis Report

Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report

NCR Voyix Corporation (VYX) : Free Stock Analysis Report

Amer Sports, Inc. (AS) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research