Intuit Stock Falls On Disappointing Guidance: Retail Mood Dampens
By Stocktwits Inc | First Published Nov 22, 2024, 11:46 AM ISTNet income declined to $197 million from $241 million in the year-ago period.
Shares of tax preparation company Intuit Inc. ($INTU), maker of Turbo Tax, fell 4.9% in after-hours session on Thursday after the company issued disappointing guidance for the second quarter and the full year, pushing down retail sentiment.
The first-quarter results, however, exceeded expectations.
Latest Videos
Intuit’s reported earnings per share (EPS) came in at $2.50, above the $2.36 expected by analysts, according to Stocktwits data. Net income declined to $197 million from $241 million a year ago.
"We've had a strong start to the year as we demonstrate the power of Intuit's AI-driven expert platform strategy,” Sasan Goodarzi, Intuit's CEO said.
Intuit revenues stood at $3.28 billion, up 10% from year-on-year (YoY), surpassing expected Wall Street revenues of $3.14 billion, according to Stocktwits data. The revenue growth was driven by a 20% increase in its Global Business Solutions Group's online ecosystem revenues and a 29% increase in Credit Karma revenue, the company said.
The company said for the current quarter ending Jan 31, 2025, it expects revenue to increase by 13%-14% and range between $3.81 billion and $3.84 billion. It however expects a “single digit” decline in its Consumer Group revenue due to “some promotional changes in retail channels” related to its desktop offerings that may cause delayed revenues but won’t affect overall revenue expectations for the full fiscal year 2025, according to the company.
That is below the $3.88 billion expected by Wall Street analysts.
Retail sentiment on the stock fell to ‘extremely bearish’ (3/100) from ‘bearish’ (41/100) a day ago. Message volumes climbed to ‘extremely high’ levels.
One Stocktwits user was predicting downgrades for the stock, while another questioned the management’s guidance.
Shares of Intuit as well as H&R block have come under pressure as “Department of Government Efficiency” is reportedly exploring a new way to file taxes.
INTU stock is up 12.41% year-to-date.
For updates and corrections, email news<room@stocktwits.com<
subscribe to Asianet Newsable WhatsApp channel by clicking here. For more reliable and latest news
subscribe to Asianet Newsable Telegram channel by clicking here.