Intuit stock surged nearly 10% in premarket trading

Shares of Intuit, the financial software company, surged nearly 10% in premarket trading Friday after the company announced it was increasing its guidance.

Intuit saw its shares reach over $629 in after hours trading after the company reported its fiscal first quarter earnings of $228 million on revenue of $2.01 billion or 82 cents per share, compared to $1.32 billion from last year.

The company reported earnings of $1.53 per share, compared to 94 cents a share in 2020 and beating Wall Street’s estimates. Intuit’s sales rose by 52% while earnings skyrocketed by 63%.

Intuit, which sells well-known and widely used software such as Mint, TurboTax and QuickBooks for accounting, increased its revenue guidance for 2021 to $1 billion.

The company credited the surge in revenue due to its purchase of MailChimp for $12 billion this year and acquisition of Credit Karma in 2020. Credit Karma, which provides credit scores and other consumer financial advice, generated $418 million of revenue for the quarter.

Intuit said it estimates full-year earnings of $11.48 to $11.64 a share based on revenue of $12.17 billion to $12.3 billion, compared to its previous estimate of $11.05 to $11.25 a share based on revenue of $11.05 billion to $11.2 billion.

The company expects second quarter earnings of $1.84 to $1.88 while its revenue increased by 73% to 74%.