Intuit stock soars toward record after acquisitions fuel earnings beat, increased guidance

image

Intuit Inc. shares jumped more than 9% and headed toward record highs in after-hours trading Thursday, after the software company raised its annual guidance while integrating recent acquisitions.

Intuit INTU, reported fiscal first-quarter earnings of $228 million, or 82 cents a share, on sales of $2.01 billion, up from $1.32 billion a year ago. After adjusting for stock-based compensation and other costs, the company known for accounting software like TurboTax and QuickBooks reported earnings of $1.53 a share, up from 94 cents a share a year ago and far ahead of analysts’ estimates. Analysts on average had projected adjusted earnings of 97 cents a share on sales of $1.81 billion, according to FactSet.

Intuit also added more than $1 billion to its revenue guidance for the full year, crediting the $12 billion acquisition of MailChimp, which closed on Nov. 1, as well as last year’s purchase of Credit Karma, which reported record quarterly revenue of $418 million Thursday. Intuit now expects adjusted full-year earnings of $11.48 to $11.64 a share on sales of $12.17 billion to $12.3 billion, after previously stating $11.05 to $11.25 a share on revenue of $11.05 billion to $11.2 billion.

“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,” Chief Executive Sasan Goodarzi said in a statement.

For the second quarter, Intuit guided for adjusted earnings of $1.84 to $1.88 a share with revenue growth of 73% to 74%. Analysts on average were expecting adjusted earnings of $1.54 a share on sales of $2.32 billion, which would equal growth of less than 50% from last year.

Intuit shares have been trading at records this year, and last closed at a new high on Tuesday, when shares finished the trading session at $645.76. After closing with a 1% decline at $628.94 on Thursday, shares topped $670 in the extended session.

The stock has increased 65.6% so far this year and 18.2% in the past three months.

Trending Ideas

Featured Stocks On The Move

Daily Rundown

Top 3 Stocks in Leading Sectors
  • 3 Real Estate Developer Stocks To Buy Now

    IRSA Inversiones y Representaciones Sociedad Anónima (IRS) IRSA Inversiones y Representaciones Sociedad Anónima is a leading real estate company in Argentina, engaged in the acquisition, development, and management of diversified... Read More

  • 3 Gas Distribution Stocks To Buy Now

    New Jersey Resources Corporation (NJR) New Jersey Resources Corporation is an energy services holding company that provides regulated natural gas distribution services through its subsidiary, New Jersey Natural Gas. The... Read More

  • 3 Food Product Stocks To Buy Now

    The Chefs’ Warehouse, Inc. (CHEF) The Chefs’ Warehouse, Inc. is a premier distributor of specialty food products, serving high-end restaurants, hotels, and gourmet food stores across the United States and... Read More

  • 3 HVAC Stocks To Buy Now

    Featured Content Lennox International Inc. (LII) Lennox International Inc. is a global leader in energy-efficient climate control solutions, specializing in heating, ventilation, air conditioning, and refrigeration (HVACR) products. The company... Read More

  • 3 Hotel Stocks To Buy Now

    Featured Content Hyatt Hotels Corporation (H) Hyatt Hotels Corporation operates a global portfolio of luxury, full-service, and lifestyle hotels, as well as vacation properties. Known for its premium hospitality offerings,... Read More

  • 3 Tobacco Stocks To Buy Now

    Featured Content Turning Point Brands, Inc. (TPB) Turning Point Brands, Inc. is a consumer products company that manufactures and markets tobacco products and alternative smoking accessories. The company’s portfolio includes... Read More

  • 3 Life Insurance Stocks To Buy Now

    Featured Content F&G Annuities & Life, Inc. (FG) F&G Annuities & Life, Inc. specializes in annuities and life insurance products designed to meet the long-term financial planning needs of clients.... Read More

  • 3 Soft Beverage Stocks To Buy Now

    Featured Content Westrock Coffee Company (WEST) Westrock Coffee Company is a leading integrated coffee, tea, and extract service provider, offering comprehensive solutions from sourcing and roasting to packaging and distribution.... Read More

  • 3 Medical Info System Stocks To Buy Now

    Featured Content Clover Health Investments, Corp. (CLOV) Clover Health Investments, Corp. is a healthcare technology company focused on improving health outcomes for America’s seniors. The company offers Medicare Advantage plans... Read More

  • 3 Electric Power Stocks To Buy Now

    Featured Content Hawaiian Electric Industries, Inc. (HE) Hawaiian Electric Industries, Inc. is a holding company that provides electric utility services and financial services in Hawaii. Through its subsidiaries, it supplies... Read More

  • 3 Bank Stocks To Buy Now

    Featured Content Comerica Incorporated (CMA) Comerica Incorporated is a financial services company headquartered in Dallas, Texas, offering a range of banking products and services, including commercial and retail banking, wealth... Read More

  • 3 Machinery Stocks To Buy Now

    Featured Content Alta Equipment Group Inc. (ALTG) Alta Equipment Group Inc. is an integrated equipment dealership platform in the United States, operating through three segments: Material Handling, Construction Equipment, and... Read More