Intuit CEO Sasan Goodarzi speaks at the opening ceremony of the Intuit Dome in Los Angeles on August 15, 2024.
Rodin Eckenroth | Film Magic | getty images
intuit Shares fell 6% in extended trading Thursday after the financial software maker released a profit forecast for the current quarter that trailed analysts’ estimates due to some sales delays.
The company’s performance compared to the LSEG agreement is as follows:
- Earnings per share: $2.50 adjustment vs. 2.35 expected
- revenue: $3.28 billion vs. $3.14 billion
Sales for the quarter ended Oct. 31 were up 10% year-over-year, according to the statement. Net income fell to $197 million, or 70 cents per share, from $241 million, or 85 cents per share, a year ago.
Fiscal first quarter results exceeded expectations, but guidance for the second quarter was bright. Intuit said it expects sales in its consumer segment to decline by a single digit due to promotional changes to its TurboTax desktop software in retail environments. This impacts the timing of revenue, but not the entire fiscal year 2025.
Intuit forecast second-quarter earnings of $2.55 to $2.61 per share and sales of $3.81 billion to $3.85 billion. The consensus for LSEG was $3.20 per share and $3.87 billion in revenue.
For the full year, Intuit expects adjusted earnings per share of $19.16 to $19.36 and revenue of $18.16 billion to $18.35 billion. This implies sales growth of between 12% and 13%. Analysts surveyed by LSEG expected adjusted earnings per share of $19.33 and revenue of $18.26 billion.
Global Business Solutions Group reported first quarter revenue of $2.5 billion. That figure was up 9% and in line with estimates, according to StreetAccount. Previously known as the Small Business and Self-Employed segment, the group includes Mailchimp, QuickBooks, Small Business Finance and Merchant Payment Processing.
“We’re making good progress with our mid-market customers with MailChimp, but we’re seeing higher churn among our smaller customers,” Sandeep Aujla, Intuit’s chief financial officer, said on a conference call with analysts. “We are solving this problem by improving our products and driving feature discoverability and adoption to improve first use and customer retention.”
Aujla said better results will come in a few quarters.
CreditKarma revenue came in at $524 million, ahead of StreetAccount’s consensus of $430 million.
As of Thursday’s close, Intuit shares were up about 9% so far in 2024, while the S&P 500 is up nearly 25% over the same period.
Intuit shares fell 5% on Tuesday after the Washington Post reported that President-elect Donald Trump’s proposed Government Efficiency Department has discussed developing a mobile app for filing federal income taxes. But Intuit’s mobile app for filing returns “is already available to every American,” CEO Sasan Goodarzi told CNBC’s Jon Fortt.
Goodarzi told CNBC that he is personally communicating with leaders of the incoming presidential administration.
see: H&R Block, Intuit shares fell after Trump managers reported they were considering a free tax filing app.
