Intuit (INTU +4.02%) stock plummeted this week following the company’s latest quarterly report. Its share price fell 18.6% in a stretch that saw the S&P 500 rise roughly 0.9% and the Nasdaq Composite gain roughly 0.5%.
After the market closed on May 20, Intuit published results for the third quarter of its current fiscal year — which ended April 30. While sales and earnings for the period beat the average Wall Street analyst estimates, investors saw warning signs in the report.
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Intuit stock sank despite fiscal Q3 beats
In fiscal Q3, Intuit recorded non-GAAP (adjusted) earnings per share of $12.80 on sales of $8.56 billion. The company’s adjusted earnings per share for the period beat the average analyst forecast by $0.23, and sales came in $20 million higher than the average target.
Consumer revenue was up 8% year over year to hit $5.3 billion, TurboTax sales were up 7% to $4.4 billion, and Credit Karma revenue was up 15% to 631 million. With ProTax revenue coming in flat at $278 million for the quarter, Intuit saw overall revenue increase 10.5% year over year in the period. Despite raising its sales and earnings forecasts, Intuit stock still got hit with a big post-earnings pullback.
Today’s Change
(4.02%) $12.34
Current Price
$319.41
Key Data Points
Market Cap
$88B
Day’s Range
$306.54 – $321.03
52wk Range
$302.36 – $813.70
Volume
544.5K
Avg Vol
4.1M
Gross Margin
77.64%
Dividend Yield
1.45%
What’s next for Intuit?
With its fiscal Q3 report, Intuit said that it now expects adjusted earnings to come in between $23.80 per share and $23.85 per share. Previously, the company had guided for adjusted per-share earnings between $22.98 and $23.18. The company also increased its full-year sales target to between $21.34 billion and $21.37 billion — up from previous guidance for sales between $20.997 billion and $21.186 billion. While some investors were expecting even stronger fiscal Q3 performance and forward guidance, the post-earnings sell-off could be a worthwhile buying opportunity.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intuit. The Motley Fool has a disclosure policy.
