Intuit (INTU) shares jumped on Friday after the financial software company crushed Wall Street’s targets for the first quarter of the financial year. It also guided higher than impressions for the current quarter and all year. Intuit shares rose more than 10% on the news.
The Mountain View, California-based company said late Thursday that it earned adjusted $ 1.53 per share on sales of $ 2.01 billion in the quarter ended Oct. 31. Wall Street expected Intuit earnings of 97 cents per share on sales of 1.81 billion dollars, according to Faktasett. On an annual basis, Intuit revenues increased by 63% while sales increased by 52%.
For the current quarter, Intuit expects to earn an adjusted $ 1.86 per share on sales of $ 2.73 billion. It is based on the midpoint of the guide. Wall Street had forecast Intuit earnings of $ 1.54 per share on sales of $ 2.32 billion in the second quarter of the fiscal year ending January 31.
“We have a strong start in the financial year 2022, and are delivering on our strategy of becoming an AI-driven expert platform that drives the prosperity of consumers and small businesses,” said CEO Sasan Goodarzi in a press release. “We continue to see strong momentum and evidence that our major efforts position us further for lasting growth in the future.”
Intuit stock pops higher
In the morning trading on the stock market today, the Intuit share rose 10.9%, close to 697.30. During the ordinary session on Thursday, the Intuit share fell 1% to 628.94.
Intuit makes TurboTax tax preparation software as well as QuickBooks, Mint and Credit Karma products. On November 1, Intuit completed the acquisition of Mailchimp in a $ 12 billion cash-and-share deal.
Intuit raised its full-year revenue guidance to reflect the acquisition of Mailchimp and the strong general momentum.
It now expects revenues from the financial year 2022 to grow 26% to 28%. With the exception of Mailchimp, Intuit expects sales growth of 18% to 20%, up from previous guidance of 15% to 16%.
At the center of its outlook, Intuit forecast full-year adjusted earnings of $ 11.56 per share on sales of $ 12.23 billion. This will translate into a year-over-year growth of 19% in earnings and 27% in sales. Analysts were looking for Intuit revenue of $ 11.23 per share on sales of $ 11.16 billion in fiscal year 2022.
Intuit Stock is a long-term leader
On October 22, Intuit broke out of a flat base at a buying point of 583.06, according to IBD MarketSmith charts.
The Intuit stock is in the IBD Long-Term Leaders Portfolio. It has a fantastic IBD Composite Rating of 97 out of 99.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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