tiprankstipranks
Intuit Q2 Earnings and Revenues Miss Estimates; Issues Guidance
Market News

Intuit Q2 Earnings and Revenues Miss Estimates; Issues Guidance

Intuit (INTU) delivered disappointing Fiscal Q2 2022 results. The company also issued full-year EPS guidance that missed estimates. INTU shares rose 6.45% to close at $497.13 on February 24.

Intuit is a software company that offers financial management solutions and compliance products and services.

Earnings

Revenue in the quarter was up 70% year-over-year to $2.7 billion but fell short of consensus estimates of $2.74 billion. The increase was driven by a 47% increase in small business and self-employed group revenue to $1.6 billion. Online ecosystem revenue was also up 74% year-over-year to $1.1 billion as Credit Karma revenue landed at $444 million.

QuickBooks Online Accounting revenue was up 35% year-over-year, driven by higher effective price mix shift and customer growth. Online Services revenue grew 139% year-over-year to $574 million as total international online revenue grew 226% year-over-year.

Non-GAAP earnings per share increased 128% year-over-year to $1.55 but missed analyst estimates of $1.89. During the quarter, Intuit repurchased $519 million worth of shares. The board has also approved a $0.68 per share dividend to be paid on April 18, 2022. Intuit’s dividend yield currently stands at 0.53%.

Guidance

Intuit has reiterated its full-year 2022 guidance whereby it expects revenue to range between $12.17 billion and $12.30 billion versus consensus estimates of $12.27 billion. The company expects a non-GAAP operating income of between $4.37 billion and $4.43 billion with diluted earnings per share of between $11.48 and $11.64 below consensus estimates of $11.70.

The company is projecting revenue growth of between 32% and 33% in the third quarter, with Non-GAAP diluted earnings per share of between $7.51 and $7.57.

Stock Rating

Oppenheimer analyst Scott Schneeberger has reiterated a Buy rating on the stock.

Consensus among analysts is a Strong Buy based on 11 Buys. The average Intuit price target of $695.56 implies 39.92% upside potential to current levels.

Download the TipRanks mobile app now.

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Read full Disclaimer & Disclosure.

Related News:
Quebecor Reports Higher Q4 Profit, Dividend Rises 9%
Agnico Eagle Posts Record Gold Production, Dividend Rises
Whitecap Resources Swings to Profit in 2021

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles