Intuit's Guidance Misses Mark, CEO Brushes Off Free U.S. Tax App Fears
Friday, Nov 22, 2024 7:29 am ET
4min read Intuit, the popular tax preparation software provider, saw its stock price fall after the company provided weaker-than-expected guidance for the current quarter and full year. While the company beat earnings estimates in its fiscal first quarter, its outlook for the second quarter and full year missed analysts' expectations. Intuit's Chief Executive Sasan Goodarzi downplayed fears that a free U.S. tax app could hurt the company's business, stating that the administration does not want to add to bureaucracy and would not want to invest in creating something that already exists. Intuit's stock fell in after-hours trading, dropping more than 5% to $641.01.
Intuit's fiscal first quarter earnings beat expectations, with adjusted EPS of $2.50 versus the expected $2.36, and revenue of $3.28B versus the expected $3.14B. However, the company's guidance for the second quarter and full year fell short of analysts' expectations. Intuit forecast adjusted earnings of $2.58-$2.61 per share on sales of $3.81-$3.85B for the second quarter, while analysts had been modeling earnings of $3.25 per share on sales of $3.88B. For the full year, Intuit expects adjusted earnings of $19.26 per share on sales of $18.25B, based on the midpoint of its guidance. Analysts had been looking for earnings of $19.33 per share on sales of $18.27B.
Intuit's stock price decline can be attributed to a combination of factors, including the weaker guidance and the proposed free U.S. tax app. The company's stock has been volatile in recent months, with a significant drop in early November following a report that the Trump administration was considering a plan to create a mobile app for Americans to file their taxes for free. However, Intuit's CEO has dismissed concerns about the app, stating that the company is focused on simplifying taxes and that free filing is already available.
The proposed free U.S. tax app has been a source of concern for Intuit and its competitors, as it could potentially draw away users and reduce revenue. However, Intuit's CEO has downplayed these fears, stating that the administration does not want to add to bureaucracy and would not want to invest in creating something that already exists.
Intuit's guidance for the second quarter and full year fell short of analysts' expectations, which contributed to the company's stock price decline. The company's earnings guidance has typically been met or exceeded in the past, which may indicate a shift in trends.
In conclusion, Intuit's stock price fell after the company provided weaker-than-expected guidance for the current quarter and full year. While the company's earnings for the fiscal first quarter beat expectations, its outlook for the second quarter and full year missed analysts' expectations. Intuit's CEO has downplayed fears that a free U.S. tax app could hurt the company's business, stating that the administration does not want to add to bureaucracy and would not want to invest in creating something that already exists. The company's guidance and stock price performance will continue to be closely watched as investors assess the potential impact of the proposed free U.S. tax app and other factors affecting the company's earnings.
Intuit's fiscal first quarter earnings beat expectations, with adjusted EPS of $2.50 versus the expected $2.36, and revenue of $3.28B versus the expected $3.14B. However, the company's guidance for the second quarter and full year fell short of analysts' expectations. Intuit forecast adjusted earnings of $2.58-$2.61 per share on sales of $3.81-$3.85B for the second quarter, while analysts had been modeling earnings of $3.25 per share on sales of $3.88B. For the full year, Intuit expects adjusted earnings of $19.26 per share on sales of $18.25B, based on the midpoint of its guidance. Analysts had been looking for earnings of $19.33 per share on sales of $18.27B.
Intuit's stock price decline can be attributed to a combination of factors, including the weaker guidance and the proposed free U.S. tax app. The company's stock has been volatile in recent months, with a significant drop in early November following a report that the Trump administration was considering a plan to create a mobile app for Americans to file their taxes for free. However, Intuit's CEO has dismissed concerns about the app, stating that the company is focused on simplifying taxes and that free filing is already available.
The proposed free U.S. tax app has been a source of concern for Intuit and its competitors, as it could potentially draw away users and reduce revenue. However, Intuit's CEO has downplayed these fears, stating that the administration does not want to add to bureaucracy and would not want to invest in creating something that already exists.
Intuit's guidance for the second quarter and full year fell short of analysts' expectations, which contributed to the company's stock price decline. The company's earnings guidance has typically been met or exceeded in the past, which may indicate a shift in trends.
In conclusion, Intuit's stock price fell after the company provided weaker-than-expected guidance for the current quarter and full year. While the company's earnings for the fiscal first quarter beat expectations, its outlook for the second quarter and full year missed analysts' expectations. Intuit's CEO has downplayed fears that a free U.S. tax app could hurt the company's business, stating that the administration does not want to add to bureaucracy and would not want to invest in creating something that already exists. The company's guidance and stock price performance will continue to be closely watched as investors assess the potential impact of the proposed free U.S. tax app and other factors affecting the company's earnings.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.