Intuit Lowers Q2 Revenue Guidance; Shares Slip 2%

Fintech company Intuit, Inc. (NASDAQ: INTU) has reiterated its revenue guidance for Fiscal Year 2022 but lowered the second-quarter revenue outlook due to a slower forming tax season.

For the second quarter ended January 31, 2022, the company expects revenue to range from $2.660 billion to $2.665 billion, lower than the earlier guidance range of $2.719 billion to $2.749 billion.

The Street’s revenue estimate for the second quarter stands at $2.74 billion.

Small Business & Self-Employed revenue is expected to range from $1.575 billion to $1.580 billion; Credit Karma revenue is likely to lie between $435 million and $440 million; Consumer Group revenue is projected to be in the range of $405 million to $410 million; and ProConnect revenue forecast stands at $230 million to $235 million.

For Fiscal Year 2022, Intuit expects revenue to range from $12.165 billion to $12.3 billion, with analysts’ expectation lying towards the higher end of the guidance range at $12.27 billion.

Additionally, revenues of all business segments are expected to be in line with the outlook issued in November.

The CEO of Intuit, Sasan Goodarzi, said, “We continue to see strong momentum across the company with Small Business and Credit Karma expected to deliver record-high revenues for the quarter with tax on track to deliver full-year fiscal 2022 revenue guidance.”

The company is scheduled to report its second-quarter results on February 24.

About Intuit

California-based Intuit provides financial management solutions and compliance products and services for small businesses, accountants, and individuals. Its products include tax preparation application TurboTax, personal finance app Mint and small business accounting program QuickBooks.

Following the announcement, after the market closed on Monday, INTU stock slipped 2% to end the day at $518.47.

Analyst Ratings

Last week, Guggenheim analyst Kenneth Wong maintained a Buy rating on the stock but did not provide a price target.

Overall, the stock has a Strong Buy consensus rating based on 18 unanimous Buys. The average INTU price target of $740.38 implies 40% upside potential. Shares have gained 43.3% over the past year.

Website Traffic

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (NYSE: SEMR), the world’s biggest website usage monitoring service, offers insight into Intuit’s performance.

According to the tool, compared to the previous year, Intuit’s website traffic has registered a 10.7% decline in global visits year-to-date.

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