Shares of software company Intuit (INTU) gained in after-hours trading after reporting solid fourth-quarter results. Earnings per share came in at $1.99, which beat analysts’ consensus estimate of $1.85 per share. In addition, sales increased by 17.3% year-over-year, with revenue hitting $3.18 billion. This also beat analysts’ expectations by $90 million.
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Looking forward, management gave its 2025 outlook and expects revenue and adjusted earnings per share to be in the ranges of $18.16 billion to $18.347 billion and $19.16 to $19.36, respectively. For reference, analysts were expecting $18.16 billion in revenue, along with an adjusted EPS of $19.16.
Intuit Repurchased Shares
During Fiscal Year 2024, Intuit repurchased approximately $2 billion worth of shares and has $4.9 billion left under its buyback plan. The company frequently buys back its own shares each quarter, as demonstrated in the image below.
Intuit also announced a $1.04 per share dividend. The dividend equates to a 16% 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 $665.29 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 17 Buys, four Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 34% rally in its share price over the past year, the average INTU price target of $721.59 per share implies 8.46% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
