What happened:
Shares of tax and accounting software provider Intuit (NASDAQ:INTU) fell 8.3% in afternoon trading after the company reported second-quarter results. Gross margins declined and revenues fell short of Wall Street estimates. The company also gave disappointing long-term guidance ahead of its investor day meeting. Fiscal 2025 growth forecast for the consumer segment was cut to 6-10% (from 8-12% previously). Similarly, revenue forecast for Credit Karma was revised down to 10-15% (from 20-25% previously), while the small business and self employed (SBSE) unit remained unchanged at 15-20%. Overall, it was a challenging quarter given the weak outlook.
The stock market overreacts to news, and large drops in prices can provide good opportunities to buy high-quality stocks. Is now the right time to buy Intuit? Get our full analysis report for free here.
What does the market tell us:
Intuit shares are quite volatile, having experienced swings of over 5% twice in the last year. With that in mind, today’s move suggests that the market considers this news significant, but not something that would fundamentally change its perception of the company.
Intuit is up 2.2% year-to-date and is trading at $617.31 per share, near its 52-week high of $670.49 set in August 2024. Investors who purchased $1,000 worth of Intuit stock 5 years ago would have an investment worth $2,215 today.
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