Why Intuit Shares Are Moving Lower On Friday

Author: Dylan Berman | August 23, 2024 12:46pm

Intuit Inc. (NASDAQ:INTU) shares are trading lower on Friday after the company reported fourth quarter earnings and issued 2025 fiscal year first quarter EPS guidance below estimates.

The Details: Intuit reported earnings after the market closed on Thursday. The company reported an adjusted EPS of $1.99, beating analysts’ estimate of $1.84, and sales of $3.18 billion, beating the $3.08 billion estimate. Intuit reported that its Consumer Group revenue fell 12% to $113 million. Additionally, the company highlighted a 20% increase in its Small Business and Self Employed Group revenue, reaching $2.6 billion; Credit Karma revenue increased by 14% to $485 million.

Outlook: Intuit announced guidance for the 2025 first quarter and fiscal year.

First Quarter: The company sees an adjusted EPS of $2.33 to $2.38, below the $2.79 estimates. Additionally, Intuit expects revenue growth between 5% and 6%.

Fiscal Year: The company sees an adjusted EPS of $19.16 to $19.36, above the $19.15 estimates. Also, Intuit sees sales between $18.16 billion and $18.34 billion versus estimates of $18.18 billion.

Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.

• Piper Sandler analyst Arvind Ramnani reiterated a Overweight rating on Intuit and raised the price target from $760 to $768.
• B of A Securities analyst Brad Sills maintained a Buy rating on Intuit and raised the price target from $730 to $780.
• BMO Capital analyst Daniel Jester maintained a Outperform rating on Intuit and raised the price target from $700 to $760.
• Stifel analyst Brad Reback maintained a Buy rating on Intuit and raised the price target from $690 to $795.
• Jefferies analyst Brent Thill maintained a Buy rating on Intuit and raised the price target from $770 to $790.
• JP Morgan analyst Sterling Auty maintained a Neutral rating on Intuit and raised the price target from $585 to $600.
• Barclays analyst Raimo Lenschow maintained a Overweight rating on Intuit and lowered the price target from $745 to $740.

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INTU Price Action: At the time of writing, Intuit stock is moving 7.90% lower at $612.72 per data from Benzinga Pro.

Photo: Shutterstock

Posted In: INTU