Intuit Inc. said fiscal first-quarter results will be higher than previously forecast when it reports earnings at the end of November, despite news the uncertain economy has hurt its Credit Karma unit.
(Bloomberg) — Intuit Inc. said fiscal first-quarter results will be higher than previously forecast when it reports earnings at the end of November, despite news the uncertain economy has hurt its Credit Karma unit.
Results in the fiscal first quarter will be above the guidance given in September of revenue growth of about 24% and profit, excluding some items, of as much as $1.20, the maker of accounting and personal finance software said Tuesday in a statement. Credit Karma, a site for consumer loans, has experienced “further deterioration” in recent weeks, Intuit said.
Earlier, Bloomberg reported that the Credit Karma unit had paused hiring, sending shares down 7.7%, the biggest single-day decline in six months, to $394.77 in New York.
For more: Intuit Pauses Hiring at Credit Karma on ‘Revenue Challenges’
“In spite of the impact to Credit Karma, we are reiterating operating income and earnings per share guidance for fiscal year 2023, and expect to report first quarter results above guidance,” Michelle Clatterbuck, Intuit’s chief financial officer said in the statement. Intuit, based in Mountain View, California, had projected fiscal-year adjusted profit of $13.59 to $13.89 a share.
Shares gained 2.5% in extended trading after the announcement. The stock has tumbled 39% this year amid a broad decline among software companies.
The company is scheduled to report fiscal first-quarter results on Nov. 29.
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