Financial software firm Intuit (INTU) late Tuesday narrowly beat Wall Street’s lowered targets for its fiscal second quarter. The earnings report pushed Intuit stock lower in extended trading.
The Mountain View, Calif.-based company earned an adjusted 68 cents a share on sales of $1.58 billion in the quarter ended Jan. 31. Analysts expected Intuit earnings of 67 cents a share on sales of $1.57 billion, according to S&P Global Market Intelligence. On a year-over-year basis, Intuit earnings fell 41% while sales dropped 7%.
On Feb. 9, the TurboTax maker lowered its sales and earnings guidance for its fiscal second quarter to account for the later start of this year’s U.S. federal tax season. The IRS didn’t start accepting and processing returns until Feb. 12, compared with Jan. 27 last year, because it needed more time for additional programming and testing of its systems.
“We are encouraged by our early results this tax season, and we are confident in our game plan to win,” Intuit Chief Executive Sasan Goodarzi said in a news release.
Intuit Stock Drops Late After Q2 Earnings Report
In after-hours trading on the stock market today, Intuit stock dropped 3.3%, near 386. During the regular session, Intuit stock fell 0.6% to 399.09 amid a tech stock sell-off.
For the current quarter ending April 30, Intuit expects to earn an adjusted $6.80 a share, up 51% year over year, based on the midpoint of its outlook. Analysts were forecasting Intuit earnings of $6.77 a share in the fiscal third quarter.
Intuit also reiterated its guidance for the full fiscal 2021. It expects to earn an adjusted $8.30 a share, up 5.5%, on sales of $8.9 billion, up 16%. That’s based on the midpoint of its guidance.
Intuit makes TurboTax, QuickBooks, Credit Karma and Mint products and services. Intuit stock ranks second out of 26 stocks in IBD’s Computer Software-Financial industry group. It has an IBD Composite Rating of 86 out of 99.
On Nov. 9, Intuit stock broke out of a cup-with-handle base at a buy point of 354.08, according to IBD MarketSmith charts. It hit a record high of 423.74 on Feb. 16 before the tech stock sell-off.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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