Shares of Intuit rose 6.4% in the extended trading session on Tuesday after the financial software solutions provider reported better-than-expected 4Q results.
Intuit’s (INTU) 4Q revenues jumped 82.7% to $1.82 billion year-on-year and surpassed analysts’ expectations of $1.57 billion. The accounting and tax preparation software maker reported adjusted EPS of $1.81, a solid improvement from the year-ago quarter’s loss of $0.09. The bottom-line results also beat Street estimates of $1.05. The company’s quarterly results mainly benefited from strong TurboTax customer growth and a 13% increase in consumer group revenues.
Intuit’s CEO Sasan Goodarzi said, “We had a strong fourth quarter capping off a dynamic fiscal 2020. After seeing an impact on small businesses from shelter-in-place during the third quarter, we saw trends across our business improve during the fourth quarter, highlighting the resiliency of our platform.” (See INTU stock analysis on TipRanks).
Ahead of its earnings, KeyBanc analyst Josh Beck raised the stock’s price target to $350 (4% upside potential) from $315 and reiterated a Buy rating. Beck noted on August 24 that after analyzing First Look and IRS data he is more positive on TurboTax fundamentals. The analyst also believes that the company has synergy opportunities tied with Credit Karma – a fintech startup that Intuit bought in February this year.
Currently, INTU has a Strong Buy analyst consensus. With shares up over 28% year-to-date, the average price target of $317.17 now implies downside potential of about 5.7% to current levels.
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