Intuit (INTU) up 10% as acquisitions boost bottom line
16:41, 19 November 2021
Intuit shares spiked 10% on Friday as the company beat estimates for fiscal first-quarter 2022 earnings and upped future earnings guidance.
The company makes financial software such as TurboTax and QuickBooks and recently acquired e-mail marketing company Mailchimp. It also bought Credit Karma almost a year ago for $3.4bn.
For the period to 31 October, net income rose to $228m (£169m) from $198m in the same period a year earlier on total net revenue of $2.01bn, up 52% from $1.32bn in last year's first quarter.
Adjusted EPS of $1.53
Adjusting earnings per share rose to $1.53 from 94 cents a year earlier.
Analysts were expecting earnings of 97 cents on revenue of $1.81bn, according according to figures widely available on financial news sites.
As at 10:48 am EDT (UTC-5) Intuit stock was up 10% at $691.70.
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A strong start
"We are off to a strong start in fiscal year 2022, delivering on our strategy of becoming an AI-driven expert platform powering the prosperity of consumers and small businesses," Intuit CEO Sasan Goodarzi said in a press release.
Looking ahead, Intuit said it now expects adjusted fiscal year 2022 earnings per share of $11.48 to $11.64 on revenue of $12.17bn to $12.3bn, up from prior guidance of earnings of $11.05 to $11.25 per share on revenue of $11.05bn to $11.2bn.
For the current fiscal second-quarter, Intuit sees adjusted earnings of $1.84 to $1.88 per share with revenue growth of 73% to 74%.
"We continue to see strong momentum and proof that our big bets are further positioning us for durable growth in the future, and we're delighted that Mailchimp has joined Intuit," Goodarzi added.