Intuit (INTU) is set to report earnings after the market closes on Tuesday, May 20th. Intuit provides business and financial management solutions for small and medium sized businesses, financial institutions, consumers, and accounting professionals.

INTU is expected to earn 1.33 per share for its 3rd quarter. We expect INTU to announce earnings that will beat investors’ and analysts’ expectations as INTU has a history of delivering earnings that exceed projections. Intuit has topped estimates 4 quarters in a row by an average of 3.5 cents.

In the last 30 days, 2 of the 10 analysts covering Intuit have raised their Q3 estimates for Intuit.

The timing could be just right for investors too.

Intuit’s share price has frequently performed well following its spring check up. It’s not uncommon for INTU to rally 10-15% in the days following its 3rd quarter report card.

Our technical analysis of the Dow Jones Software Index reveals a positive MACD crossover and Credit Suisse analyst Bryan Keane says, “that Intuit’s stock has historically performed very well from the end of March through the end of the calendar year, up 25% on average since 1998.”

Aggressive investors might want to consider the INTU July 27.5 call options. If we have made The Correct Call and Intuit trades at $31 by June 20th, the July calls would be valued near $3.60 per contract, up from yesterday’s close of $1.75.

Disclosure:none