Intuit shares fell Wednesday after the financial software firm delivered mixed results for its fiscal third quarter. INTU stock sank more than 7% on the news.
The Mountain View, Calif.-based company late Tuesday said it earned an adjusted $8.92 a share on sales of $6.02 billion in the quarter ended April 30. Analysts polled by FactSet had expected earnings of $8.48 a share on sales of $6.09 billion. On a year-over-year basis, Intuit earnings rose 17% while sales climbed 7%.
For the quarter ending July 31, Intuit predicted earnings of an adjusted $1.46 a share on sales of $2.64 billion. That's based on the midpoint of its outlook. Wall Street called for earnings of $1.50 a share on sales of $2.45 billion in the fiscal fourth quarter.
Intuit makes TurboTax tax-preparation software and QuickBooks small-business accounting software. It also offers Mint, Credit Karma and Mailchimp products.
INTU Stock Drops After Report
On the stock market today, INTU stock fell 7.5% to close at 415.92. During the regular session Tuesday, INTU stock fell 1% to close at 449.80.
"The benefits of our global financial technology platform are more mission-critical than ever to our customers," Chief Executive Sasan Goodarzi said in a news release.
However, Intuit saw a decline in TurboTax usage this tax season. Total TurboTax units dropped 5%, the company said.
"This is the first year TurboTax units excluding Free File have declined year over year," UBS analyst Taylor McGinnis said in a note to clients. She rates INTU stock as neutral with a price target of 430.
Intuit ranks fourth out of 41 stocks in IBD's Computer Software-Financial industry group, according to IBD Stock Checkup. INTU stock has an IBD Composite Rating of 97 out of 99.
Further, INTU stock is on the IBD Tech Leaders list.
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