Intuit (INTU) has reported better-than-expected results for the fourth quarter of Fiscal Year 2021 on the back of robust growth in revenues. Shares of the financial accounting and tax preparation software maker rallied 2.2% in Tuesday’s extended trade.
Net revenues for the fourth quarter stood at $2.6 billion, up 41% from the year-ago period and surpassed the Street’s estimates of $2.32 billion. Adjusted earnings came in at $1.97 per share, up 9% from the same period last year. Also, earnings beat the analysts’ expectations of $1.68 per share.
For Fiscal Year 2021, Intuit reported revenues of $9.6 billion, up 25% year-over-year and adjusted earnings grew 24% to $9.74 per share. (See Intuit stock charts on TipRanks)
The CEO of Intuit, Sasan Goodarzi, said, “Our momentum continues across the company with accelerated innovation focused on our customers’ most important needs while creating durable growth opportunities for Intuit in the future.”
For the first quarter of Fiscal Year 2022, the company expects revenues to grow approximately 36% to 38%, along with adjusted earnings per share of $0.94 to $0.99.
For full-year 2022, Intuit expects to report revenues of about of $11.05 billion to $11.2 billion, representing 15%-16% growth from Fiscal Year 2021. Adjusted EPS is expected between $11.05 and $11.25.
On August 22, Jefferies analyst Brent Thill maintained a Buy rating on the stock and raised the price target to $640 from $525. The new price target implies 15.5% upside potential from current levels.
Thill said, “We expect FY22 growth for the Small Business and Consumer segments to meet or exceed LT goals based on improving small biz health, recently enacted QBO price increases, and continued share gains by TurboTax Live from the assisted tax segment.”
Consensus among analysts is a Strong Buy based on 13 Buys and 1 Hold. The average Intuit price target of $526.1 implies 5% downside potential from current levels.
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Intuit with 18.6% of investors on TipRanks increasing their exposure to INTU stock over the past 30 days.
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