Intuit late Thursday beat estimates for its fiscal fourth quarter. The financial software firm also guided higher than views for the current fiscal year. Intuit stock rose in extended trading, but later slipped more than 1%.
The Mountain View, Calif.-based company earned an adjusted $1.99 a share on sales of $3.18 billion in the quarter ended July 31. Analysts polled by FactSet had expected Intuit earnings of $1.85 a share on sales of $3.09 billion in fiscal Q4. On a year-over-year basis, Intuit earnings rose 21% while sales increased 17%.
Intuit offers tax preparation software and other tools for individuals and small businesses to manage finances. Its products include TurboTax, QuickBooks, Credit Karma and Mailchimp.
For the current fiscal year, Intuit predicted adjusted earnings of $19.26 a share on sales of $18.25 billion, based on the midpoint of its outlook. Wall Street was modeling earnings of $19.10 a share on sales of $18.16 billion. In the just-finished fiscal 2024, Intuit earned an adjusted $16.94 a share, up 18%, on sales of $16.29 billion, up 13%.
Intuit Stock Near Buy Point
"We delivered very strong results for the fourth quarter and full year, and made meaningful progress with our AI-driven expert platform strategy that positions the company for durable growth in the future," Intuit Chief Executive Sasan Goodarzi said in a news release.
Intuit stock is in a cup-with-handle base with a buy point of 674.34, according to IBD MarketSurge.
In after-hours trading on the stock market today, Intuit stock initially jumped 2.1% to 678.95. But the stock later retreated, and was last down more than 1%. During the regular session Thursday, Intuit stock dipped 0.8% to close at 665.29. In intraday trading, it climbed as high as 674.78 before pulling back.
For the current quarter ending Oct. 31, Intuit forecast adjusted earnings of $2.36 a share on sales of $3.13 billion. That's based on the midpoint of its guidance. Analysts had been looking for earnings of $2.78 a share on sales of $3.37 billion in the fiscal first quarter.
However, an accounting change at Intuit caused a disconnect between analyst estimates and company guidance in the first quarter. Intuit's shift to a subscription business model for QuickBooks changed the timing of how it recognizes revenue from the segment.
Intuit stock is on the IBD Tech Leaders list.
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