Intuit Stock Gains After Earnings Beat, Analysts Say Results Better-than-Feared

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By Senad Karaahmetovic

Intuit (NASDAQ:INTU) shares are up almost 3% in premarket trading Wednesday after the company reported better than expected Q3 adjusted EPS and issued upbeat guidance.

Intuit reported Q3 adjusted EPS of $7.65, compared to $6.07 in the year-ago period and topping the consensus estimates of $7.57. Net revenue came in at $5.63 billion, up 35% YoY and above the analyst consensus of $5.51 billion.

For this quarter, Intuit expects adjusted EPS in the range of $0.94 to $1, while analysts were looking for $0.93 per share. The company expects Q4 revenue to be down -8% to -9%.

On a full-year basis, Intu expects FY adjusted EPS in the range of $11.68 to $11.74, up from $11.48 to $11.64, and above the analyst expectations of $11.65 per share. Intuit forecasts FY revenue in the range of $12.63 billion to $12.67 billion, up from $12.17 billion to $12.30 billion, while analysts were projecting $12.32 billion.

Stifel analyst Brad Reback cut the price target to $465.00 per share from $580.00 to reflect multiple compression.

“The company benefited from a solid, albeit not great (total returns filed with the IRS declined 3% YoY due to difficult covid comps), tax season as well as continued Credit Karma strength and healthy Small Business dynamics within the QuickBooks and MailChimp franchises,” Reback told clients in a note.

Going forward, the analyst expects INTU to outperform its peers.

BMO analyst Daniel Jester said results were better than feared. The analyst also cut the price target to $475.00 per share from $550.00.

“We think the quarter highlighted the resiliency of the platforms, which we anticipate will continue to be tested given numerous uncertainties facing small businesses,” Jester wrote.