Intuit Inc. shares fell 3% in after-hours trading Thursday, even as the company reported quarterly revenue that met analysts’ estimates and earnings that beat them.
“It was an excellent quarter despite the IRS changing course [tax-filing] season after one week”, Intuit INTU,
CEO Sasan Goodarzi said this in an interview. “We outperformed in what is typically our biggest quarter of the year.”
Part of Intuit’s strategy this tax season is closely tied to artificial intelligence and how its Credit Karma, TurboTax Live and Intuit Assist products use technology to empower customers, Goodarzi said. “The next stage of growth is [generative] AI,” he said.
The maker of tax preparation software reported fiscal second-quarter net income of $353 million, or $1.25 per share, compared with net income of $168 million, or 60 cents per share, in the same quarter as a year ago. Adjusted earnings were $2.63 per share.
Revenue rose 11% to $3.39 billion from $3.04 billion in the same quarter last year.
Analysts polled by FactSet had expected average net income of $2.30 per share on revenue of $3.39 billion.
Intuit offered fiscal year sales forecasts of $15.9 billion to $16.1 billion, while FactSet analysts expect $16.05 billion.
Intuit shares are up 60% this year, while the broader S&P 500 SPX index is up 27%.
Analysts were bullish on Intuit. Earlier this week, Wells Fargo raised its price target on Intuit shares to $710 from $615 and maintained its overweight rating.