- Thursday, October 17, 2024
Intuit, a leading provider of tax and accounting software, has announced better-than-expected results for its October quarter. Despite the challenging economic climate, the company reported a significant increase in revenue compared to the previous year.
Impressive Q1 Performance
For the fiscal first quarter, Intuit recorded revenue of $3 billion, indicating a remarkable growth rate of 15% year-over-year. This surge in revenue exceeded the company's initial prediction of 10% to 11% growth. Wall Street analysts had also projected lower revenue at $2.88 billion, making Intuit's performance all the more impressive.
Exceeding Expectations
On an adjusted basis, Intuit achieved an earnings-per-share (EPS) of $2.47 for the quarter. This result not only surpassed the company's own guidance range of $1.94 to $2 per share but also exceeded the consensus estimate of $1.98 among industry experts. Under generally accepted accounting principles (GAAP), Intuit's EPS stood at 85 cents.
Revenue Breakdown
In terms of revenue breakdown, Intuit's "small business and self-employed" group contributed significantly, reaching $2.3 billion, representing an 18% increase. The consumer segment also demonstrated strong growth, with a revenue of $187 million, up 25% from the previous year. However, revenue at Credit Karma experienced a slight decline of 5%, amounting to $405 million.
Outlook for January Quarter and Full Year
Intuit expects some revenue that was initially projected for the January quarter to have shifted to the October quarter. As a result, the company anticipates revenue growth of 11% to 12% for the January quarter, with adjusted profits ranging from $2.25 to $2.31 per share. This forecast differs slightly from the Street consensus, which anticipated 12% revenue growth and a profit of $2.57 per share.
Looking ahead to the full fiscal year, Intuit affirms its revenue guidance of $15.89 billion to $16.105 billion, reflecting an 11% to 12% increase. Adjusted profits for the year are projected to be between $16.17 and $16.47 per share. These figures include anticipated growth of 16% to 17% in the small business and self-employed group, as well as 7% to 8% growth in the consumer segment. The company also expects Credit Karma's top line to range from a 3% decline to 3% growth.
Market Performance
Following the announcement, Intuit's stock experienced minimal change in late trading on Tuesday. However, the company's shares have demonstrated a solid performance throughout the year, with a 45% increase year-to-date. At the end of late trading, Intuit shares stood at $568.
All Rights Reserved © 2024
Post a comment