Financial software provider Intuit (NASDAQ:INTU) delivered better-than-expected results for the first quarter of Fiscal Year 2023. The company reported adjusted EPS of $1.66 per share, up 8% year-over-year and surpassing the analysts’ expectations of $1.19 per share. Also, revenues increased by 29% to $2.6 billion, which beat the consensus estimate of $2.5 billion.
Despite the upbeat results, the company lowered its Fiscal 2023 revenue guidance because of the weak performance of its Credit Karma segment. In this regard, Intuit CEO Sasan Goodarzi said that “We continue to see partners pull back from extending credit, reflecting the uncertainty in the economic environment and the risk of deterioration in credit performance.”
For the full year 2023, the company now expects to report revenues in the range of $14.04 billion to $14.25 billion, compared with prior expectations of $14.49 billion to $14.7 billion. Also, its Credit Karma segment is projected to decline by 15%-10% in fiscal 2023.
Is Intuit a Buy or Sell Stock?
Wall Street is currently bullish on Intuit stock. INTU commands a Strong Buy consensus rating based on 16 Buy and one Hold recommendations. The stock’s average price target of $514.38 implies 35.47% upside potential. The stock has plummeted about 40% year-to-date.
In contrast to the analysts, hedge funds and insiders have a bearish stance on INTU. Our data shows that hedge funds sold 4.8 million shares of INTU last quarter. Also, insiders have sold Intuit shares worth $3.4 million in the last three months.