Intuit late Tuesday trounced estimates for its fiscal second quarter but provided mixed guidance for the current period. The financial software firm also reaffirmed its full-year outlook. Intuit stock rose in extended trading.
The tax-prep and accounting software maker earned an adjusted $3.32 a share on sales of $3.96 billion in the quarter ended Jan. 31. Analysts polled by FactSet had expected Intuit earnings of $2.57 a share on sales of $3.83 billion. On a year-over-year basis, Intuit earnings rose 26% while sales increased 17%.
For the current quarter ending April 30, Intuit forecast adjusted earnings of $10.92 a share on sales of $7.58 billion. That's based on the midpoint of its guidance. Wall Street had been modeling earnings of $11.51 a share on sales of $7.52 billion. In the same quarter last year, Intuit earned an adjusted $9.88 a share on sales of $6.74 billion.
The lower-than-expected earnings guidance for fiscal Q3 was due to a shift in expenses, Mizuho Securities analyst Siti Panigrahi said in a client note.
Intuit reiterated its outlook for the full fiscal year. Based on the midpoint of its guidance, Intuit expects to earn an adjusted $19.26 a share on sales of $18.25 billion. That would translate to year-over-year growth of 14% in earnings and 12% in revenue. However, Wall Street had been looking for fiscal 2025 earnings of $19.29 a share on sales of $18.28 billion.
Mountain View, Calif.-based Intuit offers personal and business financial software including TurboTax, QuickBooks, Credit Karma and Mailchimp.
"We are making great progress fueling the financial success of consumers, businesses, and accountants with our AI-driven expert platform," Chief Executive Sasan Goodarzi said in a news release. "Intuit Assist is delivering 'done-for-you' experiences to complete tasks, automate end-to-end workflows, and connect customers to AI-powered human experts, powering their prosperity."
In after-hours trading on the stock market today, Intuit stock rose nearly 5% to 582.81. During the regular session Tuesday, Intuit stock dropped 2.1% to close at 555.63.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
