Intuit Reports Strong Revenue Growth in Latest Quarter
Intuit announced higher revenue in its latest quarter, thanks to growth in key segments. The company reported adjusted earnings of $2.63 per share, surpassing analysts’ estimates of $2.30 per share. Revenue saw an 11% increase, reaching $3.39 billion, in line with analysts’ expectations. While the company’s Consumer Group revenue experienced a 5% decline from the previous year due to the later opening of the Internal Revenue Service, Credit Karma revenue remained flat compared to the prior-year period. This is seen as a positive sign after the unit had been reporting declining revenue for several quarters.
For the second quarter ended January 31, Intuit recorded a net income of $353 million, or $1.25 per share, up from $168 million, or 60 cents per share, in the same period the previous year. The Small Business and Self-Employed Group revenue surged 18% from the prior year, while ProTax Group revenue climbed 8% due to the timing of tax form deliveries.
Intuit’s Chief Executive, Sasan Goodarzi, expressed confidence in the company’s ability to innovate across its products and maintain momentum.
Looking ahead, Intuit expects revenue growth between 10% and 11% for the fiscal third quarter ending April 30. The company also forecasts adjusted earnings per share in the range of $9.31 and $9.38. Analysts had predicted third-quarter revenue of $6.61 billion, indicating a 9.8% increase from the previous year, along with adjusted earnings of $9.70 per share.
Intuit’s positive performance reflects its ability to adapt to market changes and innovate in the tax preparation software industry. As the company continues to develop new products and expand its presence, it is well-positioned to capitalize on future growth opportunities.
Analyst comment
Positive news. The market is expected to react positively to Intuit’s higher revenue and surpassing analysts’ estimates. The company’s ability to innovate and adapt indicates future growth opportunities, making it well-positioned for continued success.
