Intuit first-quarter results top estimates, but earnings guidance falls short
Investing.com | Author Scott Kanowsky
Published Nov 28, 2023 04:18PM ET
Updated Nov 29, 2023 06:42AM ET
Investing.com -- Shares in Intuit (NASDAQ:INTU) edged higher in premarket U.S. trading on Wednesday after the software group reported better-than-expected fiscal first-quarter results, but unveiled soft guidance for earnings in its current quarter.
California-based Intuit has seen demand increase for its generative artificial intelligence-infused offerings, which include well-known products like tax preparation service TurboTax, personal finance platform Credit Karma, and small business-focused accounting software package QuickBooks.
For the three months through Oct. 31, the company posted adjusted per-share earnings of $2.47 on revenue of $3.00 billion, compared with analysts’ estimates for $1.98 on revenue of $2.88B.
Intuit said it expects adjusted income per share of $2.25 to $2.31 in its second quarter, an outlook that was shy of Bloomberg consensus projections of $2.56. Meanwhile, the firm reiterated its guidance for the full fiscal year 2024, forecasting adjusted earnings per share of $16.17 to $16.47 on revenue of $15.89B to $16.11B.
In a call with analysts, Chief Financial Officer Sandeep Aujla said Intuit was taking a "prudent" approach to its financial guidance "given the uncertain macroeconomic environment."
Analysts at Wolfe Research said in a note to clients that while a slowdown in small- to medium-sized businesses due to these possible economic headwinds presents a potential impediment to growth at Intuit, the firm will "be more resilient than most think."
Yasin Ebrahim contributed to this report.
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