Shares of software company Intuit (NASDAQ:INTU) sinks in after-hours trading despite reporting solid third-quarter results. Earnings per share came in at $9.88, which beat analysts’ consensus estimate of $9.38 per share. Sales increased by 12% year-over-year, with revenue hitting $6.74 billion. This beat analysts’ expectations by $100 million.
Looking forward, management raised its 2024 outlook and now expects revenue and adjusted earnings per share to be in the ranges of $16.164 billion to $16.200 billion and $16.79 to $16.84, respectively. For reference, analysts were expecting $16.05 billion in revenue along with an adjusted EPS of $16.42.
Intuit Repurchased Shares
During the quarter, Intuit repurchased $584 million worth of shares. The company frequently buys back its own shares each quarter, as demonstrated in the image below. Intuit also announced a $0.90 per share dividend. The dividend equates to a 15% year-over-year increase and is the 13th year of dividend growth, according to TipRanks’ data. Nevertheless, both buybacks and dividends are a relatively small drop in the bucket when considering its $187 billion market cap and $662 share price at today’s close.
![](https://blog.tipranks.com/wp-content/uploads/2024/05/image-880-1024x332.png)
What Is the Fair Value of Intuit?
Turning to Wall Street, analysts have a Strong Buy consensus rating on INTU stock based on 11 Buys, two Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 60% rally in its share price over the past year, the average INTU price target of $705.23 per share implies 5.24% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
![](https://blog.tipranks.com/wp-content/uploads/2024/05/image-879-1024x351.png)
Is INTU the Right Stock to Buy for Passive Income?
Before you hurry to invest in INTU, think about the following:
TipRanks’ team has built a Smart Dividend Stock Portfolio for investors, and Intuit is not included. Our portfolio highlights companies that have been hand-picked for their potential to deliver significant passive income for years to come.
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