Intuit (INTU) shares plummeted 18.6% this week following its fiscal Q3 earnings report, despite beating Wall Street estimates on both sales and earnings. The company reported adjusted earnings per share of $12.80 on sales of $8.56 billion, surpassing forecasts by $0.23 and $20 million, respectively. However, investors reacted negatively to flat ProTax revenue and potentially lower-than-expected growth, even as consumer revenue and TurboTax sales showed solid year-over-year increases.
This significant drop in Intuit’s stock price stands in stark contrast to the overall market, with the S&P 500 and Nasdaq Composite both posting gains. The market’s reaction highlights a growing caution among investors regarding growth expectations, even when a company raises its guidance. Intuit’s increased forecast for adjusted earnings and sales for the full year may not have been enough to assuage concerns.
For market professionals, the sharp decline could present a buying opportunity, particularly as Intuit’s fundamentals remain strong despite the recent volatility.
Source: fool.com