Should Investors Avoid Intuit Stock Despite an Earnings Beat?

Following a Monday afternoon earnings release, Intuit (NASDAQ: INTU) stock held steady on Tuesday amid a massive sell-off in the overall market. For the second quarter, Intuit beat expectations on both earnings and revenue. Though it fell modestly, the stock outperformed the S&P 500, which lost about 3% on the day.

Like other financial tech stocks, Intuit has benefited from healthy revenue and earnings growth. The stock has tripled in value over the last five years. However, that has led to elevated valuations, and moves by competitors could threaten its core businesses. Such challenges lead to questions about whether or not investors have priced in the uncertainty surrounding the future of Intuit stock.

The company reported earnings of $1.16 per share, beating consensus estimates by $0.14 per share. Intuit earned $1.00 per share in the same quarter last year. Revenue came in at $1.7 billion, exceeding estimates by $20 million. That represents a 13.3% increase from the year-ago number of $1.5 billion.

Source Fool.com