Financial software firm Intuit beat analyst estimates for its fiscal fourth quarter but offered a mixed outlook for the current period. INTU stock rose Friday on the news.
The Mountain View, Calif.-based company late Thursday said it earned an adjusted $1.65 a share on sales of $2.71 billion in the quarter ended July 31. Analysts polled by FactSet had expected Intuit earnings of $1.43 a share on sales of $2.64 billion. On a year-over-year basis, Intuit earnings rose 50% while sales climbed 12%.
For the current quarter, Intuit predicted adjusted earnings of $1.97 a share on sales of $2.88 billion. That's based on the midpoint of its outlook. Wall Street had called for earnings of $2.01 a share on sales of $2.88 billion in the fiscal first quarter.
For the full fiscal year, Intuit forecast adjusted earnings of $16.32 a share on sales of $16 billion. Analysts were looking for earnings of $15.85 a share on sales of $15.96 billion.
INTU Stock Rises After Report
On the stock market today, INTU stock climbed 4.1% to close at 519.05. During the regular session Thursday, INTU stock slid 0.5% to close at 498.50.
On July 17, INTU stock broke out of a 48-week consolidation period at a buy point of 490.83, according to IBD MarketSmith charts.
Intuit makes TurboTax tax-preparation software and QuickBooks small-business accounting software. It also offers Mint, Credit Karma and Mailchimp products.
Intuit Touts Business Momentum, AI
"We had a very strong fourth quarter, ending the year with momentum, as we executed on our strategy to be the global AI-driven expert platform powering prosperity for consumers and small businesses," Chief Executive Sasan Goodarzi said in a news release.
He added, "Our overall performance demonstrates the strength of our platform and portfolio including our ability to maintain earnings power in uncertain times and expand operating margin while investing in the most important areas to drive durable long-term growth."
INTU Stock Gets Price-Target Hikes
At least 10 Wall Street firms raised their price targets on INTU stock after Intuit's report.
However, analysts were disappointed with Intuit's growth outlook for consumer tax-prep software in the current fiscal 2024. Intuit forecast growth of 7% to 8% in the segment, vs. expectations for 9.1%.
"We believe it sets a low bar (that Intuit) is likely to beat," Jefferies analyst Brent Thill said in a note to clients. He maintained his buy rating on INTU stock with a price target of 600.
Further, INTU stock is on the IBD Tech Leaders list.
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