- Stock surges 8% overnight after earnings/revenues
- Credit Karma growing faster than expected
- Full-year guidance lifted as optimism abounds
Intuit’s (INTU:NASDAQ) stock looks set to open at new all-time-highs when Wall Street reopens later today after positive earnings and the optimistic tone over its future growth in its after-hours release.
The company’s latest results not only beat analyst expectations but also prompted management to raise full-year guidance across key financial metrics.
The financial software giant, known for its TurboTax, QuickBooks, Credit Karma, and Mailchimp lines, saw its stock surge 8% in after-hours trading, implying an open at around $719. The stock’s previous best close was $692.34 in late 2021.
MARKET EXPECTATIONS TOPPED
Mountain View, California-based Intuit reported third-quarter revenue of $7.75 billion, representing a 15% year-on-year increase and handily beating consensus estimates of $7.56 billion, according to Investing.com data. Earnings also topped estimates, the company posting $11.65 per share, up $9.88 a year earlier, and ahead of consensus $10.90 projections.
Credit Karma growing faster than expected / Image source: Adobe
Yet it is management’s future optimism that really grabbed the market, Intuit upping full-year revenue guidance to a range of $18.72 billion to $18.76 billion, up from a previous range of $18.16 billion to $18.35 billion. Adjusted EPS (earnings per share) guidance was also lifted to $20.07 to $20.12, compared to $19.16 to $19.36 previously.
GOOD CREDIT KARMA
The upgrades are underpinned by strong momentum in the firm’s Consumer arm and a dramatic acceleration at Credit Karma, its consumer credit ratings business. It is now forecast to grow 28% this year.
Ahead of the earnings release, Intuit was trading on a 12-month rolling forward PE (price to earnings) multiple of 31, a rough 40% premium to the S&P 500’s 18.6.
