What is driving Intuit Inc. (NASDAQ: INTU) stock

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Intuit Inc. (NASDAQ: INTU) stock rose over 3% in the pre-market session of 25th February, 2020 (Source: Google finance) after the company posted better than expected results for the second quarter of FY 20. The company has reported GAAP net income of $240 million, as compared to $189 million, in the prior-year period.

INTU in the second quarter of FY 20 has reported the adjusted earnings per share of $1.16, beating the analysts’ estimates for the adjusted earnings per share of $1.03. The company had reported the adjusted revenue growth of 13 percent to $1.7 billion in the second quarter of FY 20, beating the analysts’ estimates for revenue of $1.68 billion. The topline results were driven by a 17% increase in Small Business and Self-Employed Group and an 8% increase in Consumer Group. During the second quarter, Small Business Online Ecosystem revenue rose by 35%. Strong customer growth, along with higher prices and mix-shift, led to a 43% rise in QuickBooks online accounting revenue. Online Services revenues grew 23%, aided by QuickBooks Online payroll and QuickBooks Online payments.

Additionally, in the second quarter 2020 the company had repurchased $139 million of shares, with $2.4 billion remaining on the company’s authorization. The company has declared the quarterly dividend of $0.53 per share, which will be payable April 20, 2020 and represents a 13 percent increase compared to the same period last year.

For the third quarter of fiscal year 2020, the company expects revenue growth to be in the range of 10 to 11 percent and Non-GAAP diluted earnings per share are expected to be in the range of $5.90 to $5.95.

For full fiscal year 2020, the company expects revenue to be in the range of $7.440 billion to $7.540 billion, which represents growth of 10 to 11 percent, Non-GAAP operating income is expected to be in the range of $2.515 billion to $2.565 billion, growth of 10 to 12 percent and Non-GAAP diluted earnings per share are expected to be in the range of $7.50 to $7.60, growth of 11 to 13 percent.

Meanwhile, Intuit has announced its agreement to acquire personal finance platform Credit Karma for approximately $7.1 billion in cash and stock. The deal, which is projected to close in the second half of calendar year 2020, is expected to be neutral to accretive to adjusted EPS in the first full fiscal year after closure.

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