Intuit's Stock Falls 5% On Weak Forward Guidance
Date
11/23/2024 6:41:41 AM
(MENAFN- Baystreet)
Shares of Intuit (INTU) are down 5% after the software company announced revenue guidance for the current quarter that fell short of Wall Street's expectations.
The Silicon Valley-based company reported earnings per share (EPS) of $2.50 U.S., which was ahead of the $2.35 U.S. that was expected among analysts.
Revenue in the year's third quarter totaled $3.28 billion U.S., which also topped the $3.14 billion U.S. consensus forecast on Wall Street. Sales were up 10% from a year earlier.
Although the latest financial results beat estimates, the company behind products such as TurboTax and QuickBooks issued forward guidance that was weak.
Intuit said that it anticipates a single digit decline in revenue from its consumer segment and software products sold to retail customers.
Intuit called for earnings in the current quarter of $2.55 U.S. to $2.61 U.S. a share, with $3.81 billion U.S. to $3.85 billion U.S. in revenue.
Wall Street had been looking for EPS of $3.20 U.S. and $3.87 billion U.S. in sales.
For the full fiscal year, Intuit said it expects $19.16 U.S. to $19.36 U.S. in earnings on $18.16 billion U.S. to $18.35 billion U.S. in revenue.
The full year guidance is within Wall Street targets of $19.33 U.S. in earnings and $18.26 billion U.S. of revenue.
Intuit's stock has been under pressure recently on reports that president-elect Donald Trump's administration is planning to develop a mobile app for federal income tax filing.
Such an app would compete directly against the mobile app from Intuit that allows Americans to file their income tax directly to the Internal Revenue Service.
Prior to today (Nov. 22), Intuit's stock had risen 12% this year to trade at $678.70 U.S. a share.
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