On Friday, Intuit stock ended up 8%. This came a day after the company reported quarterly results that were better than expected and gave optimistic outlooks for the whole year.
Intuit, which makes TurboTax and QuickBooks software, said that sales rose 15% to $7.8 billion in the third quarter of its fiscal year. Last year, net income was $2.39 billion, or $8.42 per share. This year, it was $2.82 billion, or $10.02 per share.
Intuit CEO Sasan Goodarzi said on Thursday’s “Closing Bell: Overtime” that the company’s internal growth has been the fastest in more than ten years. “There’s been so much growth across the platform.”
If everything goes as planned, Intuit says it will make between $18.72 billion and $18.76 billion this fiscal year. This is more than the range of $18.16 billion to $18.35 billion it said last quarter. LSEG says that analysts were expecting $18.35 billion.
Goodarzi said in a Thursday press release, “We’re redefining what’s possible with AI by becoming a one-stop shop of AI-agents and AI-enabled human experts to fuel the success of consumers and small and mid-market businesses.”
Goldman Sachs analysts said again that they think the stock is a buy and raised their price goal from $750 to $860. They said that Intuit’s performance in its main areas of growth is “reinforcing confidence” in its long-term growth path.
Analysts also said that the company’s plan to use AI, which includes bringing in AI bots, will bring in more benefits.
According to Goldman Sachs experts, Intuit is one of a kind because it works with both consumers and businesses and uses AI to help decide what to do first.
Deutsche Bank analysts also said again that they think the stock is a buy and raised their price goal from $750 to $815.
They said that the company’s results were “reassuring” after two rough years and that they are more sure that it can grow its customer business.
The analysts said in a Friday note, “Longer term, we continue to believe Intuit presents a unique investment opportunity and we see its platform approach powering accelerated innovation with leverage, thus enabling sustained mid-teens or better EPS growth.”
