Analyst Note| Julie Bhusal Sharma |
Wide-moat Intuit’s second quarter results were in line with management’s updated guidance given earlier this month, which was prompted by the IRS’ delayed start to accepting and processing tax returns this tax season in the U.S. Guidance for the remainder of the year was also maintained from the outlook reiteration several weeks ago, leaving Intuit set for a year of accelerated growth--though such acceleration is attributed to Intuit’s purchase of Credit Karma in its second quarter. Given the unsurprising results, we’re maintaining our fair value estimate of $314 per share, which leaves the stock overvalued, in our view. Since the earnings results today were previewed previously, we think the 3% dip in Intuit’s market price upon news of earnings is a result of the general tech sell-off today.