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.
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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.
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.
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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