Intuit (INTU) stock fell over 20% on Thursday after the financial software company reported fiscal third-quarter earnings. It also announced layoffs and received a wave of analyst price target cuts following the report.
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Even though Intuit topped Wall Street’s expectations, many analysts lowered their price targets. This was due to slowing TurboTax growth and concerns about the company’s long-term outlook.
Stifel analyst Brad Reback cut his price target for INTU stock to $375 from $500 while keeping a Buy rating. The analyst noted that TurboTax revenue growth of 7% came in below expectations for growth above 10%. Reback also said management didn’t fully back its long-term 15% to 20% growth guidance during the earnings call.
Additional analyst updates on INTU stock included:
- UBS analyst Taylor McGinnis lowered her price target to $360 from $440 while maintaining a Hold rating.
- Citi analyst Steve Enders reiterated a Buy rating and reduced his price target to $591 from $649.
- Wells Fargo analyst Michael Turrin cut his price target to $360 from $425 and kept a Hold rating.
- Truist analyst Arvind Ramnani reiterated a Buy rating while lowering his price target to $410 from $500.
- Jefferies analyst Brent Thill maintained a Buy rating and lowered his target to $550 from $650.
Intuit Earnings and Layoffs
Despite the analyst cuts, Intuit still reported stronger-than-expected quarterly results. The company posted adjusted earnings per share of $12.80, beating Wall Street estimates of $12.50. Revenue also topped forecasts, coming in at $8.6 billion compared to estimates of $8.54 billion.
At the same time, Intuit announced plans to lay off about 17% of its global workforce, or roughly 3,000 employees across seven countries.
What About the Best Analysts Covering INTU Stock?
Among analysts covering Intuit, Deutsche Bank analyst Brad Zelnick ranks as one of the strongest performers tracked by TipRanks. Over the past year, Zelnick has delivered an 82% success rate with an average return of 24.16% per rating. Over the past two years, the analyst has maintained a 76% success rate with an average return of 34.05%. He has a Buy rating and $600 price target for INTU stock.
