Intuit, a finance software company, saw a decline in its stock by 6% in after-hours trading due to a missed quarterly revenue forecast. The company’s revenue forecast for the current quarter fell short of analysts’ expectations, leading to this drop in stock value.
In comparison to the LSEG consensus, Intuit reported earnings per share of $2.50 adjusted, surpassing the expected $2.35. The revenue for the quarter was $3.28 billion, higher than the anticipated $3.14 billion. Despite a 10% year-over-year revenue increase, net income dropped to $197 million, or 70 cents per share, from $241 million, or 85 cents per share, compared to the previous year.
While the results for the fiscal first quarter exceeded estimates, the second-quarter guidance was lower than expected. Intuit mentioned a potential single-digit revenue decline in the consumer segment due to promotional changes for the TurboTax desktop software in retail settings. This adjustment might affect revenue timing but is not expected to impact the full 2025 fiscal year.
For the second quarter, Intuit projected earnings of $2.55 to $2.61 per share and revenue between $3.81 billion to $3.85 billion. Analysts from LSEG had predicted $3.20 per share and $3.87 billion in revenue. Looking ahead, Intuit anticipates adjusted earnings per share of $19.16 to $19.36 on revenue between $18.16 billion to $18.35 billion for the full year. This suggests a revenue growth of 12% to 13%.
In the first quarter, revenue from Intuit’s global business solutions group reached $2.5 billion, a 9% increase in line with estimates. This segment includes Mailchimp, QuickBooks, small business financing, and merchant payment processing. Intuit’s finance chief, Sandeep Aujla, mentioned addressing higher customer churn from smaller businesses by enhancing products and improving customer retention.
CreditKarma revenue exceeded expectations at $524 million, compared to the $430 million consensus. Despite the recent stock decline, Intuit shares had seen a 9% increase in 2024. CEO Sasan Goodarzi expressed optimism about the economy, believing in a better future ahead, especially with potential improvements in interest rates, job market, and regulatory environment.
On a separate note, Intuit faced a 5% stock drop after news emerged about a federal income tax filing mobile app proposed by President-elect Donald Trump’s “Department of Government Efficiency.” However, Intuit already offers a similar app for tax filing. Goodarzi mentioned ongoing communication with the incoming administration and remained positive about the company’s prospects moving forward.
