Intuit's Strong Earnings
After the closing bell on Tuesday, Intuit Inc. (Nasdaq: INTU) beat earnings results with its fiscal fourth-quarter 2020 earnings release. On the top line, revenues of $1.816 billion exceeded expectations of $1.563 billion. On the bottom line, adjusted earnings per share of $1.81 exceeded expectations of $1.11 per share.
CEO Sasan Goodarzi stated, “We had a strong fourth quarter capping off a dynamic fiscal 2020. After seeing an impact on small businesses from shelter-in-place during the third quarter, we saw trends across our business improve during the fourth quarter, highlighting the resiliency of our platform."
"We had an outstanding tax season, growing the Do-It-Yourself (DIY) category overall as well as our share of total returns while posting the strongest customer growth in four years. TurboTax Live had another great season, as we made significant progress in our effort to transform the assisted category."
Breaking down the headline number segment results, on a year over year basis, Small Businesses & Self-Employed Group revenue climbed to $1.049 billion and Consumer revenue came in at $710 million. Strategic Partner revenue was $57 million.
Looking ahead, Intuit has not provided any company level guidance due to the current environment reflecting uncertainty in small business trends.
Intuit is considering several instances of how the economic recovery could impact the small business performance of their company going forward, in which the Small Business & Self- Employed revenue growth could either reach mid or high-single digits or remain flat to low single-digits. Additionally, Intuit expects Small Business & Self-Employed revenue growth to be slower in the first half of fiscal 2021 compared to the second half.
Intuit was up nearly 6.0% in the premarket trading, however, has given up the majority of that increase since the market open.
Disclosure: At the time of publication, I have no positions in any of the securities mentioned in this article. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for creating this article (other than from TheStreet) and have no business relationship with any company whose stock is mentioned in this article.