MOUNTAIN VIEW, Calif. - Intuit Inc. (NASDAQ:INTU) reported fourth-quarter earnings that beat analyst expectations but the company's shares fell 1% in premarket trading Friday after it recalibrated long-term growth expectations came in mixed.
The maker of TurboTax and QuickBooks reported adjusted earnings per share of $1.99 for the quarter ended July 31, surpassing the analyst consensus of $1.85. Revenue rose 17% YoY to $3.18 billion, exceeding estimates of $3.08 billion.
For fiscal year 2025, Intuit forecasts adjusted earnings per share of $19.16 to $19.36 on revenue of $18.16 billion to $18.35 billion. Both ranges came in above Wall Street expectations of $19.15 EPS and $18.18 billion in revenue.
"We delivered very strong results for the fourth quarter and full year, and made meaningful progress with our AI-driven expert platform strategy that positions the company for durable growth in the future," said CEO Sasan Goodarzi.
Notably, Intuit adjusted long-term targets on the earnings call, moderating expectations for Consumer and Credit Karma, but reaffirmed SBSE targets, which, according to RBC analysts "is what matters most."
"All in, Intuit’s SMB customers proved more resilient than expected, as focus now shifts to the company’s September investor day," they added.
Separately, analysts at JPMorgan (NYSE:JPM) said with long-term growth guidance adjustments, investors "may try to assess whether the out-years have a slightly different flavor, even as the FY25 outlook is comparatively encouraging."
"There is plenty to digest following Intuit’s Q4 earnings, though we maintain our positive view of Intuit’s history of innovation and software vision for businesses and individuals, while a relatively full valuation and transition /execution risk keep us on the sideline," they added.
Still, JPMorgan lifted its target price on the stock from $585 to $600.
The company's Small Business and Self-Employed Group saw revenue climb 20% to $2.6 billion in Q4, while Credit Karma revenue increased 14% to $485 million. Consumer Group revenue declined 12% to $113 million.
For the full fiscal year 2024, Intuit's total revenue grew 13% to $16.3 billion. The company repurchased $2 billion of stock during the year and approved a new $3 billion repurchase authorization.
Intuit also raised its quarterly dividend by 16% to $1.04 per share, payable on October 18.
Looking ahead to Q1 fiscal 2025, the company expects revenue growth of 5% to 6% and adjusted EPS of $2.33 to $2.38.
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