Intuit Inc. (NASDAQ:INTU) reported solid second-quarter results that narrowly beat Wall Street estimates, affirming resiliency in its core business amid a challenging microenvironment. The TurboTax maker continued to see strong momentum and accelerating innovation across its key brands.
Solid Financial Results
According to the Chief Executive Officer, Sasan Goodarzi, Small Business and Self-employed Groups continued to deliver double-digit revenue growth. In addition, the recently acquired Credit Karma continued to perform well.
Likewise, the Mountain View California-based company reported earnings of 68 cents a share, beating consensus estimates of 67 cents a share. Sales were down 7% year over year to $1.58 billion but still topped analysts’ estimates of $1.57 billion. Small Business and Self Employed Group revenue was up 11% to $1.1 billion, with online ecosystem revenue growing 22% to $644 million.
The solid second-quarter financials came on the heels of Intuit lowering its sales and earnings guidance at the start of February. The lowering sought to account for the later start of this year’s federal tax season that was pushed from January 27 to February 12.
Intuit Outlook
In one of the clearest indications that Intuit could be in for an impressive 2021 is impressive third-quarter guidance. The company says it expects adjusted earnings of $6.80 for the quarter ending April 30, 2021, representing a 51% year over year increase. In contrast, analysts expect the company to report earnings of $6.77 a share.
For the full year, Intuit expects earnings of $8.30 a share, representing a 5.5% year-over-year increase. Sales, on the other hand, are expected to come in at $8.9 billion, representing a 16% year over year increase.
The maker of TurboTax and QuickBooks has been on an impressive run in the market, helped by solid underlying fundamentals. In 2020, the stock was up by more than 40%, having bottomed from two-year lows. While the stock has pulled lower from record highs of $423 a share, it is still trading in an uptrend and looks bullish.