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Intuit’s 1Q Profit Soars 129%;  Street Sticks To Buy
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Intuit’s 1Q Profit Soars 129%; Street Sticks To Buy

Intuit reported stronger-than-expected 1Q results, wherein its adjusted EPS more than doubled to $0.94 from $0.41 reported in the year-ago quarter and handily surpassed analysts’ expectations of $0.37. The financial management and compliance products and services provider’s 1Q bottom-line results benefited from higher revenues and lower operating expenses.

Intuit’s (INTU) 1Q revenues grew 14% to $1.32 billion and exceeded the Street’s estimates of $1.21 billion. The top-line rise reflects a 28% increase in QuickBooks online accounting revenue and a 17% gain in Online Services revenue.

“We had a strong start to the year as we continue to accelerate innovation on our A.I. [artificial intelligence]-driven expert platform,” said Sasan Goodarzi, Intuit’s CEO. “We delivered double-digit revenue growth in the quarter and are excited by the velocity of our innovation.” (See INTU stock analysis on TipRanks)

As for 2Q, Intuit projects revenue growth in the range of 8%-9%, higher than the analysts’ expectations of approximately 6% growth. It expects 2Q adjusted EPS to be in the range of $1.31-$1.34, above the Street’s $1.23 call.

The company’s fiscal 2021 revenue guidance range of $8.265-$8.415 billion beat analysts’ expectations of $8.25 billion.

Ahead of its earnings release on Nov. 17, Jefferies analyst Brent Thill reiterated his Buy rating and the price target of $400 (10.7% upside potential) on the stock. In a note to investors, Thill said that the company’s fiscal 2021 revenue estimates look conservative and expects it to surpass his as well as the Street’s estimates.

Currently, the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 13 Buys and 2 Holds. The average price target stands at $384.33 and implies upside potential of about 6.3% to current levels. Shares are up by 38% year-to-date.

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