MOUNTAINVIEW, California – Intuitive Inc. (NASDAQ:) reported fourth-quarter earnings that beat analyst expectations, but the company’s shares fell 1% in premarket trading Friday after its recalibrated long-term growth expectations were mixed.
The maker of TurboTax and QuickBooks reported adjusted earnings per share of $1.99 for the quarter ended July 31, beating the analyst consensus of $1.85. Revenue rose 17% year over year to $3.18 billion, beating estimates of $3.08 billion.
For fiscal 2025, Intuit forecasts adjusted earnings per share of $19.16 to $19.36 on revenue of $18.16 billion to $18.35 billion. Both ranges came in above Wall Street expectations of $19.15 in earnings per share and $18.18 billion in revenue.
“We delivered very strong results for the fourth quarter and full year, making meaningful progress on our AI-driven expert platform strategy that positions the company for sustainable growth going forward,” said CEO Sasan Goodarzi.
Notably, Intuit adjusted its long-term targets based on earnings expectations, tempering expectations for consumer and credit karma but reaffirming its SBSE targets, which RBC analysts say is “the most important thing.”
“Overall, Intuit’s SMB customers proved more resilient than expected as the focus now shifts to the company’s investor day in September,” she added.
In addition, JPMorgan analysts said that with adjustments to long-term growth guidance, investors “may try to gauge whether prior years have a slightly different flavor, even if the FY25 outlook is relatively encouraging.”
“There’s plenty to digest following Intuit’s fourth-quarter earnings results, although we maintain our positive view of Intuit’s history of innovation and enterprise and consumer software vision, while relatively high valuation and transition/execution risk keeps us on the sidelines,” she added.
Still, JPMorgan raised its price target on the stock from $585 to $600.
The company’s Small Business and Self-Employed Group saw fourth-quarter revenue rise 20% to $2.6 billion, while Credit Karma’s revenue rose 14% to $485 million. Consumer Group revenue fell 12% to $113 million.
For the full fiscal year 2024, Intuit’s total revenue grew 13% to $16.3 billion. The company repurchased $2 billion worth of stock during the year and approved a new $3 billion repurchase authorization.
Intuit also increased its quarterly dividend by 16% to $1.04 per share, payable on October 18.
Looking ahead to the first quarter of fiscal 2025, the company expects revenue growth of 5% to 6% and adjusted earnings per share of $2.33 to $2.38.
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