In a significant financial update, Intuit has announced its fiscal fourth-quarter results, showcasing stronger-than-expected performance fueled by substantial revenue gains across its platform. The company reported adjusted per-share earnings rising to $1.99 for the quarter ending July 31, up from $1.65 in the same period last year.
This figure surpassed the consensus estimate provided by Capital IQ, which was forecasted at $1.85. Furthermore, Intuit's revenue surged by 17%, reaching $3.18 billion, eclipsing the street's projected $3.09 billion. After the announcement, Intuit's stock reflected investor confidence, climbing 2.5% in after-hours trading. A closer analysis reveals that the small business and self-employed group generated revenue growth of 20% year-over-year, totaling $2.6 billion.
This increase was significantly aided by a 17% rise in online accounting sales through QuickBooks, which the company attributed to a surge in customer acquisition alongside higher pricing strategies. In a strategic move earlier this month, Intuit rebranded this division to strengthen its global business solutions focus. On another front, personal finance platform Credit Karma also contributed positively, posting a 14% revenue increase to $485 million.
The growth was primarily driven by enhanced services in auto insurance, personal loans, and credit card offerings. However, it's worth noting that the consumer sales segment experienced a decline of 12%, bringing in $113 million. As Intuit looks ahead, the parent company of the well-known tax-preparation software TurboTax has provided optimistic projections for fiscal 2025.
They anticipate adjusted earnings per share (EPS) growth between 13% to 14%, targeting a range of $19.16 to $19.36. Revenue expectations have also been set high, with forecasts suggesting a 12% to 13% increase, ultimately aiming for totals between $18.16 billion and $18.35 billion. Consensus estimates for normalized EPS stand firm at $19.16, with revenue projections matching the earlier stated figure of $18.16 billion. For the fiscal first quarter ending October 31, Intuit has projected adjusted EPS in the range of $2.33 to $2.38, with revenues expected between $3.11 billion to $3.15 billion.
Industry analysts surveyed by Capital IQ have set their expectations at $2.79 for EPS and $3.37 billion for revenue. In a move reflecting operational adjustments, Intuit disclosed that it plans to initiate layoffs affecting 1,800 employees and shut down two of its locations. This restructuring plan, which the company stated would have an associated cost of approximately $250 million to $260 million, aims to streamline operations and improve overall efficiency.
Price: 682.01, Change: +16.72, Percent Change: +2.51 $INTU.