Double-digit revenue growth capped yet another impressive quarter for Intuit Inc. (NASDAQ:INTU), which has been flying high for the better of the year. The maker of TurboTax, QuickBooks, and Mint continued to accelerate innovation in the recent quarter while focusing on Artificial Intelligence.
Stellar Q1 Results
Earnings in the first quarter more than doubled to $0.94 a share against $0.41 a share reported a year ago, helped by robust growth in sales at small business and consumer groups. Net income more than tripled to $198 million compared to $57 million reported a year earlier. Revenues were also up coming in at $1.3 billion compared to $1.16 billion reported a year-ago quarter.
Customer growth and mix shift allowed the company to grow its QuickBooks online revenue by 28% as Online Services revenue grew 17%, driven by QuickBooks Online payments. International online revenue was up 51%.
For the second quarter, ending January 31, 2021, Intuit expects revenue to grow by between 8 and 9%, with GAAP earnings per share coming in at between $0.89 and $0.92. The company expects revenue of between $8.3 billion and $8.4 billion for the full year, representing an 8 to 10% year over year growth.
Stock Outlook
Buoyed by the impressive Q1 financial results and full-year outlook, a number of investment firms have initiated coverage of the stock with bullish price tags. Analysts at RBC Capital Markets have an outperform rating on Intuit stock with a share price target of $415, up from an initial target of $405.
On the other hand, Morgan Stanley analyst Keith Weiss has an overweight rating on the stock with a share price target of $390. Piper Sandler's analyst maintains an overweight rating with a price target of $390.
Intuit is up by more than 50% from its March lows, underscoring the strengthened investor confidence about the company’s long-term prospects and growth metrics. While the stock has pulled lower from its record highs of $377 in recent weeks, it remains bullish given the strength of the underlying fundamentals supported by robust revenue growth.