Intuit Reports Preliminary Q2 Results to Warn of Slower Tax Season Start; Maintain $511 FVE

Wide-moat Intuit reported preliminary second-quarter earnings ahead of its official release to come Feb. 24 to give investors a head's up on a slower start to this year's tax season. Intuit expects to report revenue at a midpoint of $2.663 billion (compared with formerly guided $2.734 billion). Despite the step down from what we were expecting, we are encouraged that Intuit reiterated its full-year 2022 guidance, implying that whatever was lost over the quarter will be made up for in the remainder of the year--as we see the tax season to its end. This gives us confidence in maintaining our $511 fair value estimate for Intuit, which leaves the stock fairly valued--and approaching our fair value estimate further--as the stock is down 3% upon the preliminary release.