Intuit (NASDAQ:INTU) stock fell about 2% in yesterday’s extended trade. The company reported mixed results for the fiscal second quarter, with revenue meeting analyst expectations while earnings exceeded the same.
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INTU is a financial software company that provides solutions for small businesses and personal finance management.
Q2 Earnings Snapshot
The company’s Q2 adjusted earnings per share increased 20% year-over-year to $2.63 and beat analysts’ expectations of $2.30. Meanwhile, revenue increased 11% to $3.39 billion and came in line with the consensus estimates.
Segment-wise, the Small Business & Self-Employed segment saw a revenue surge of 18%, the Online Ecosystem unit revenue increased by 21%, and ProTax Group sales climbed up by 8%, all of which drove Q2’s top-line growth. This was partially offset by lower revenue in the Consumer Group division.
Q3 and 2024 Outlook
The company expects Q3 revenue to increase by 10% to 11%. Also, adjusted EPS is expected to come in the range of $9.31 to $9.38, compared with the consensus estimate of $9.70 per share.
Additionally, revenue is expected to increase by 11% to 12% and come in the range of $15.89 billion to $16.10 billion. Moreover, INTU expects EPS to be in the range of $16.17 to $16.47, implying a 12% to 14% year-over-year increase.
Is Intuit Stock a Good Buy?
Intuit’s focus on expanding AI-integrated product offerings bodes well for long-term growth. Furthermore, the company’s consistent revenue and earnings growth, combined with its commitment to enhancing shareholder value through dividend increases, serves as a positive catalyst.
Overall, INTU stock has a Strong Buy consensus rating, based on 18 Buy and one Hold recommendations. The average stock price target of $678.24 implies 3.1% upside potential. Shares of the company have gained 60.8% over the past year.