Intuit Results Beat in Q2; Confirms $7.1 Billion Deal for Credit Karma
Investing.com - Intuit reported on Monday second-quarter results that topped analysts' estimates. The company also confirmed media reports that it is buying personal finance company Credit Karma for $7.1 billion.
The company said Credit Karma would remain a standalone business led by CEO Kenneth Lin.
"By joining forces with Credit Karma, we can create a personalized financial assistant that will help consumers find the right financial products, put more money in their pockets and provide insights and advice, enabling them to buy the home they’ve always dreamed about, pay for education and take the vacation they’ve always wanted," Intuit (NASDAQ:INTU) said.
The news arrived as the tax software company reported better-than-expected earnings and revenue for the second quarter, led by growth in its small business and self-employed and consumer segments.
Intuit announced earnings per share (EPS) of $1.16 on revenue of $1.70 billion. Analysts polled by Investing.com anticipated EPS of $1.02 on revenue of $1.68 billion. That compared with EPS of $1 on revenue of $1.5 billion in the same period a year before. Intuit (NASDAQ:INTU) had reported EPS of $0.41 on revenue of $1.17 billion in the previous quarter.
Its small business and self-employed segment saw revenue rise 17% to $973 million, and small business online ecosystem segment revenue jumped 35%, while the consumer group revenue climbed 8% to $499 million.
"We are halfway through our fiscal year and continue to see strong momentum as we make progress on our strategy to become an A.I.-driven expert platform," CEO Sasan Goodarzi said.
"Our second quarter revenue grew 13 percent overall, fueled by 17 percent growth in the Small Business and Self-Employed Group and 8 percent growth in the Consumer Group," Goodarzi said. "Tax season is well-underway and we’re focused on helping consumers make ends meet and getting their largest tax refund, while delivering the best experience across our products."
Analysts are expecting EPS of $6.17 and revenue of $3.59B in the upcoming quarter.
Intuit shares are up 9.46% from the beginning of the year , still down 6.58% from its 52 week high of $306.89 set on February 19. They are outperforming the S&P 500 which is down 0.54% year to date.
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