Intuit’s shares saw a 6% decline in extended trading due to a revenue forecast for the current quarter that missed analyst expectations, driven by delayed sales. Despite surpassing first-quarter estimates, with earnings per share at $2.50 (vs. $2.35 expected) and revenue of $3.28 billion (vs. $3.14 billion expected), guidance for the second quarter was underwhelming. The company predicts a single-digit revenue drop in the consumer segment due to changes in TurboTax promotions, although this won’t affect the full 2025 fiscal year.
Intuit forecasts second-quarter earnings between $2.55 to $2.61 per share with revenue ranging from $3.81 billion to $3.85 billion, both below LSEG consensus. For the entire year, the company anticipates earnings per share of $19.16 to $19.36 on $18.16 billion to $18.35 billion in revenue, suggesting 12%-13% growth.
The global business solutions sector, including Mailchimp and QuickBooks, recorded $2.5 billion in the first quarter, aligning with expectations. However, the segment is facing higher churn from smaller customers, prompting product enhancements. CreditKarma outperformed by registering $524 million in revenue against the expected $430 million.
Intuit’s shares have risen 9% in 2024, but still trail the S&P 500’s 25% gain. A recent report about a potential government-backed tax-filing app caused further share declines, although CEO Sasan Goodarzi clarified that Intuit already offers such an app. Goodarzi remains optimistic about economic prospects in 2025, expecting relief from burdensome factors like interest rates and regulatory challenges.
Original Story https://www.cnbc.com/2024/11/21/intuit-intu-q1-earnings-report-2025.html
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