Intuit Inc INTU shares are trading narrowly higher Wednesday. The stock initially fell after the company reported better-than-expected financial results, but issued second-quarter earnings guidance below analyst estimates.
What Happened: Intuit said fiscal first-quarter revenue increased 29% year-over-year to $2.6 billion, which beat average analyst estimates of $2.5 billion, according to Benzinga Pro. The company reported quarterly earnings of $1.66 per share, which beat average estimates of $1.22 per share.
"While we are pleased with first quarter results, we shared earlier this month that Credit Karma experienced continuing deterioration across all verticals in the last few weeks of the first quarter. Despite this impact to Credit Karma, we are reiterating operating income and earnings per share guidance for fiscal year 2023," said Michelle Clatterbuck, CFO of Intuit.
Outlook: Intuit expects fiscal second-quarter earnings to be in a range of $1.41 to $1.45 per share versus average estimates of $2.06 per share. Second-quarter revenue is expected to grow between 8% and 9% year-over-year.
The company sees full-year earnings between $13.59 and $13.89 per share versus average estimates of $13.75 per share.
Analyst Assessment: Multiple analysts lowered price targets in the wake of the company's quarterly results.
- Keybanc analyst Josh Beck maintained Intuit with an Overweight and lowered the price target from $450 to $400.
- Barclays analyst Raimo Lenschow maintained Intuit with an Overweight and lowered the price target from $490 to $465.
- Jefferies analyst Brent Thill maintained Intuit with a Buy and lowered the price target from $575 to $525.
- BMO Capital analyst Daniel Jester maintained Intuit with an Outperform and lowered the price target from $467 to $448.
INTU Price Action: Intuit has a 52-week high of $684.07 and a 52-week low of $339.36.
The stock traded down to $370 in Tuesday's after-hours session, but it was up 0.09% at $380.04 Wednesday morning, according to Benzinga Pro.
Photo: Mike Mozart from Flickr.
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