investiment.io
Intuit Reports Strong Quarterly Results, Raises Full-Year Guidance Boosted by AI Demand Despite Guidance Miss
Intuit Inc. exceeded Wall Street expectations for its third quarter, raised its full-year outlook, but saw a 6% pre-market share drop due to mixed guidance and a decline in free TurboTax users.
Intuit Inc. reported impressive financial results for its third quarter, exceeding Wall Street's expectations, thanks in part to surging demand for its artificial intelligence (AI) offerings. Despite this, the company experienced a share price drop in pre-market trading due to concerns over its current quarter guidance and a noticeable decline in free TurboTax users.
During the latest tax season, Intuit witnessed a reduction in its lower-end customer base, with the number of people using TurboTax to file their taxes declining by approximately 1 million to 10 million users. Additionally, the company's guidance for the current quarter ending on July 31 failed to meet analyst expectations. Intuit projected revenue to fall in the range of $3.06 to $3.1 billion, lower than the anticipated $3.34 billion, and adjusted earnings per share (EPS) between $1.80 and $1.85, under the expected $1.96.
Despite these challenges, Intuit saw significant year-over-year growth in its fiscal third quarter, which ended on April 30. The company's revenue increased by 12% to $6.7 billion, and its adjusted EPS rose by 11% to $9.88, surpassing the forecasts of $6.65 billion and $9.34, respectively. Buoyed by these strong results, Intuit raised its full-year revenue outlook to between $16.16 and $16.2 billion, up from its previous guidance range of $15.89 billion to $16.11 billion. The company also uplifted its adjusted EPS forecast to indicate a 17% growth, reaching $16.79 to $16.84, compared to the earlier growth expectation of 12% to 14%.
Despite the pre-market stock decline, Intuit CEO Sasan Goodarzi expressed pride in the company’s innovative strides and performance. He highlighted the upward revision of Intuit's revenue, operating income, and earnings per share guidance for the fiscal year, underscoring the company's positive momentum.
Shares of Intuit, however, reacted to the mixed news by trading down 6.2% at $621 before the market opened in New York on Friday, indicating that investor concerns over the guidance miss and the dip in free TurboTax users temporarily overshadowed the company's robust quarterly achievements and its optimistic full-year outlook.
Articles published about this story
- proactiveinvestors.comproactiveinvestors.com
- investors.cominvestors.com
- businesswire.combusinesswire.com
- reuters.comreuters.com
- marketwatch.commarketwatch.com
More stories
- investiment.ioinvestiment.io
Robinhood Markets, Inc. has seen its stock price surge to a new 52-week high, driven by positive upgrades and a favorable market environment. The company's performance in 2024 and its position in the penny stock market have also contributed to its recent success.
- investiment.ioinvestiment.io
Hino Motors, a subsidiary of Toyota, faces criminal charges in the U.S. for selling over 105,000 non-compliant diesel engines, marking a significant scandal in the automotive industry.
- investiment.ioinvestiment.io
Instagram, owned by Meta, experienced a significant outage in the US on January 15, 2025, which was largely resolved by the afternoon, as reported by Downdetector.
- investiment.ioinvestiment.io
BlackRock Inc. reported a record $11.6 trillion in assets under management in Q4 2024, driven by strong market performance and strategic acquisitions, leading to a rise in its stock price.
- investiment.ioinvestiment.io
General Motors has signed a multi-billion dollar agreement with Vianode to secure synthetic graphite for its electric vehicle batteries, aiming to reduce reliance on China and enhance EV production.
- investiment.ioinvestiment.io
The Bank of New York Mellon Corporation (BNY) reported a robust Q4 2024, with earnings and revenue surpassing expectations, leading to a significant rise in its stock price.
- investiment.ioinvestiment.io
JPMorgan Chase reported a record annual profit and a significant Q4 earnings beat, driven by a surge in investment banking fees and trading revenue, surpassing Wall Street expectations.
- investiment.ioinvestiment.io
Meta Platforms Inc. plans to cut approximately 5% of its workforce, focusing on low performers, as part of its ongoing efficiency drive. CEO Mark Zuckerberg announced the move in an internal memo, signaling an 'intense year' ahead with a focus on AI, smart glasses, and social media innovation.
- investiment.ioinvestiment.io
Pfizer is set to significantly reduce its stake in Haleon, the maker of Sensodyne, to 7.3% through a £2.5 billion share sale, as announced by bookrunner J.P. Morgan.
- investiment.ioinvestiment.io
Boeing's stock experienced a decline following a significant drop in aircraft deliveries in 2024, marking the lowest delivery numbers since the onset of the COVID-19 pandemic. The company faced challenges including a labor strike, production issues, and increased competition from Airbus.