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Shares of Intuit (NASDAQ:INTU) are up almost 6% after the financial software company reported fourth-quarter results.
Adjusted EPS was reported at $1.10 to top the Bloomberg consensus of $0.98. Revenue came in at $2.41 billion, again higher than the $2.34 billion estimate.
For this quarter, Intuit said it expects revenue growth to come between +23% and +25% while an adjusted EPS is seen in the range of $1.14 to $1.20, much lower than the $1.86 consensus.
For the full year, Intuit sees an adjusted EPS of $13.59 to $13.89, which compares to the estimate of $13.89. Revenue is seen between $14.49 billion to $14.70 billion, somewhere in line with the consensus of $14.57 billion.
Intuit also said its board approved a quarterly dividend of $0.78 per share, as well as a new $2 billion repurchase authorization, giving the company a total authorization of $3.5 billion to buy back its shares.
A Morgan Stanley analyst said INTU delivered a “solid beat.”
“While investors may question the conservatism of the guide, a broadening portfolio and focus on improving op margins buttresses our confidence EPS has room to move higher,” the analyst wrote in a client note.
A Bank of America analyst hiked the price target to $570 from $475 after seeing “strong” results.
“We are encouraged by QB ARPU strength from the price increase and premium mix, demonstrating pricing power in the mission critical accounting segment. With incremental focus targeting the MM with QBOA in FY23, we believe that QB ARPU represents an enduring growth driver,” the BofA analyst explained in a note.
