Intuit Q2 earnings top estimates, Q3 guidance disappoints
Intuit (INTU) posted second-quarter adjusted earnings per share of $2.63, much better than the $2.29 Wall Street was expecting. Revenue of $3.39 billion was in line with estimates. The company also reiterated its full-year guidance, but its third-quarter adjusted earnings per share guidance of $9.31 to $9.38 was short of the expected $9.70.
Yahoo Finance's Julie Hyman and Josh Lipton break down the report.
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Editor's note: This article was written by Stephanie Mikulich
Video Transcript
JULIE HYMAN: We got Intuit's second quarter results coming out and hitting the wire. The shares moving down a quick 2% here. And Josh, do you have them front of you because I'm having trouble pulling them up?
JOSH LIPTON: Yeah, we got into it. So EPS 263 it looks like, Julie, versus 229. Revenue $3.39 billion versus expectations of $3,38 billion. Looking ahead, Q3 EPS 931 to 938. The Street was at 970. So that is a miss and maybe explains why at least initially here we're seeing a bit of a drop in the after hours. Reiterating their full-year guidance by the way. They're still calling for 15.89 to 16.11 The Street was close to 16.04.
JULIE HYMAN: Right. And they're saying third quarter revenue will rise 10% to 11% here, but it doesn't seem like that's anything that is helping matters as well. And I guess if you look at their different segments, that's what's helping out here. Consumer group revenue though was down by 5% because, I guess, the IRS opened later this year. And Credit Karma revenue, they say, was flat compared to the last year. Although the company had been seeing declining revenue in that Credit Karma segment. So the fact that it didn't decline was good news. And finally, small business and self-employed up 18%. Pro tax group revenue was up 8% as well. So that's how the different groups stacked up but overall, seeing that negative reaction.
JOSH LIPTON: And of course, AI-related questions too, Julie. Don't forget because it's 2024. So--
JULIE HYMAN: Right. Can AI do my taxes already?
JOSH LIPTON: There's going to be-- for sure, you will have questions about Intuit Assist, right? Financial assistant, you'll have that on the call. Look for that color. By the way, let's cruise the Street, 23 buys, eight holds, one sell. The average price target is about $640, and we are just there now in the after hours.
