Yahoo Finance Intuit shares hit record highs, quarter blows past estimates
Intuit (INTU) shares soared 10% to close at a record high on Friday after the financial software company posted better-than-expected quarterly results and guidance above expectations. Intuit's stock had been up as much as 13% during the session. Share settled at $692.34 each.
Inuit reported revenue of $2.01 billion for its latest quarter and adjusted earnings of $1.53 per share. Both metrics topped Wall Street analyst estimates.
"We are off to a strong start in fiscal year 2022 with continued momentum across the company given our strategy of becoming a global AI-driven expert platform powering the prosperity of consumers and small businesses," CEO Sasan Goodarzi said during the company's conference call.
The company has benefited from its recent acquisitions, including Credit Karma.
"First quarter revenue grew 52 percent, including 32 points from the addition of Credit Karma," highlighted Goodarzi.
Intuit acquired the personal finance company in 2020. This year it completed the acquisition of Mailchimp, a marketing automation platform.
"We consider acquisitions to accelerate our growth and fill out our product roadmap. We return excess cash that we can’t invest profitably in the business to shareholders via both share repurchases and dividends," Intuit's CFO Michelle Clatterbuck added during the conference call.
Intuit expects adjusted earnings for its second quarter anywhere between $1.84 and $1.88. The company estimates its full year fiscal 2022 revenue will come in anywhere between $12.17 billion and $12.3 billion.
Wall Street's reception to the results was positive. Goldman Sachs analyst Kash Rangan upgraded the stock to a Buy rating with a price target of $840, up from $535.
Intuit's stock is up more than 85% year-to-date.
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