Intuit Shares Drop 6% After Revenue Forecast Falls Short
Intuit, the finance software maker, saw its shares drop 6% in extended trading after issuing a revenue forecast for the current quarter that didn’t meet analysts’ expectations due to delayed sales.
Financial Performance Highlights
- Earnings per share: $2.50 adjusted vs. $2.35 expected
- Revenue: $3.28 billion vs. $3.14 billion
Revenue for the quarter ending Oct. 31 increased by 10% year over year, but net income fell to $197 million from $241 million in the previous year.
Second-Quarter Guidance
- Anticipates single-digit revenue decline in the consumer segment due to promotional changes for TurboTax desktop software
- Expects second-quarter earnings of $2.55 to $2.61 per share and $3.81 billion to $3.85 billion in revenue
Full-Year Outlook
For the full year, Intuit expects $19.16 to $19.36 in adjusted earnings per share and $18.16 billion to $18.35 billion in revenue, indicating revenue growth of 12% to 13%.
Business Solutions and CreditKarma Performance
- Revenue from Intuit’s global business solutions group was $2.5 billion in the first quarter, up 9%
- CreditKarma revenue came in at $524 million, exceeding expectations
CEO’s Response to Market Developments
Intuit CEO Sasan Goodarzi expressed optimism about the economy, stating that he believes a better future lies ahead for businesses despite current challenges.
Key Takeaways
- Intuit shares have seen a 9% increase in 2024, contrasting with the S&P 500’s 25% gain
- Goodarzi is actively engaging with the incoming presidential administration to address market concerns
Conclusion
Despite facing some challenges in the current quarter, Intuit remains optimistic about future growth prospects and is focused on enhancing customer experience and product offerings.
