By Patrick Seitz

Financial software firm Intuit (INTU) late Thursday handily beat estimates for its fiscal first quarter but offered a motley outlook for the current period. Intuit stock rose in extended trading.

The Mountain View, Calif.-based company earned an adjusted $3.34 a share on sales of $3.89 billion in the quarter ended Oct. 31. Analysts polled by FactSet had expected earnings of $3.09 a share on sales of $3.76 billion. On a year-over-year basis, Intuit earnings rose 34% while sales increased 18%.

For its current quarter ending Jan. 31, Intuit forecast adjusted earnings of $3.66 a share on sales of $4.53 billion, based on the midpoint of its guidance. Wall Street had been modeling earnings of $3.85 a share on sales of $4.46 billion for the fiscal second quarter. In the same quarter last year, Intuit earned an adjusted $3.32 a share on sales of $3.96 billion.

Intuit's products include TurboTax, QuickBooks, Credit Karma and Mailchimp.

Intuit Stock Rises Late

Meanwhile, Intuit reiterated its full-year guidance of 12% to 13% revenue growth and 14% to 15% adjusted earnings growth.

In after-hours trading on the stock market today, Intuit stock climbed a fraction to 642. During the regular session Thursday, Intuit stock fell 2% to close at 637.44.

"We delivered an exceptional first quarter as we continue to execute on our AI-driven expert platform strategy," Intuit Chief Executive Sasan Goodarzi said in a news release. "Intuit is creating a system of intelligence, leveraging data, data services, AI, and human intelligence to fuel the success of consumers, small and mid-market businesses, and accountants."

On Tuesday, Intuit announced a partnership with high-profile AI startup OpenAI. Under the alliance, Intuit will bring its apps into ChatGPT and add more AI to its products. The companies seek to deliver personalized and actionable financial insights and recommendations to consumers and businesses.

"Our partnership combines the power of Intuit's proprietary financial data, credit models, and AI platform capabilities with OpenAI's scale and frontier models to give users the financial advantage they need to prosper," Goodarzi said in a news release.

As part of the arrangement, Intuit signed a multiyear contract with OpenAI worth $100 million-plus.

Intuit stock has slumped since it hit an all-time high 813.70 on July 30.

Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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Source article: Investor's Business Daily