Despite a slowing economy, Intuit Inc. (NASDAQ: INTU) continues to eke out growth. In the latest quarter, revenues increased 8% to $481 million.

The good news is that the company has a diversified array of revenue streams - such as with tax preparation, payroll and small business software - that have strong market positions and customer loyalty.

Unfortunately, it looks like the U.S. economy is getting worse - and that means some more weakness for Intuit. Going into the next quarter, the guidance is for revenue growth of 3% to 5%.

Essentially, there are three main drags. First, there has been a fall in merchant transaction volume, which is probably a result of the deterioration of consumer spending. Next, the number of new QuickBooks users has fallen -- perhaps a key reason is that people have a difficulty getting credit to start up businesses. Finally, there are slowdowns in segments like real estate and Quicken.

Continue reading Recession hits Intuit (INTU), but prodcut diversification helps

Recession hits Intuit (INTU), but prodcut diversification helps originally appeared on BloggingStocks on Thu, 20 Nov 2008 11:41:00 EST. Please see our terms for use of feeds.