Tax Reform in This Election Year: It's Not Likely
Bonds Are a 'Safe' Investment: A Big Lie Gets Even Bigger
Intuit Inc. (INTU) received some good word today from a major firm. According to our Analyst Calls article, Citigroup initiated the company with a buy rating. Not bad for shareholders.
Or is it? At the close of the session, shares of the name behind Turbo Tax were off by 0.3% to $48.87. That might represent a very small sell-off, but when you read that a stock has received a buy rating, the hope is for a little more action. It makes you wonder if the idea may not actually be worth buying.
turbo tax posts
FeedIntuit: Time to Buy This Stock?
Down to the Wire with Your Taxes?
The rush is on as the tax deadline looms. Yet, there are some things you can do to help things out -- and hopefully reduce stress. This is according to a piece in Kiplingers.com.First of all, you may actually be able to file your return for free at www.irs.gov/freefile. This is so long as you make $57,000 or less (this accounts for roughly 70% of all taxpayers). And if not, offerings from companies like TurboTax are certainly affordable and easy to use.
Intuit taxes investors
With "tax time" fast approaching, Intuit (NASDAQ: INTU) is perhaps one of the few that are happy. After all, it sells the dominant tax software product, TurboTax.
Yet, as seen with the fiscal Q2 results, things are not so rosy. Revenue increased 11% to $834.9 million and profit was $115.2 million, or 34 cents per share, down from $145.4 million, or 40 cents, a year earlier.
True, Intuit's tax business remains strong (especially the online sales). However, the company is showing some strains with its QuickBooks line (which is an accounting system for small business).
So, is this because of the slowing economy? Well, according to the conference call, Intuit wasn't sure. For example, the problem could be the result of the timing of marketing expenditures. Or, there may be strains from the credit crunch (such as the difficulties of refinancings and even getting credit lines).
As a result, it should be no surprise that Intuit has provided meager guidance. Basically, the company expects revenue growth of 5% to 7%.
Although, looking for the long haul, Intuit remains optimistic. For example, the company recently purchased Homestead, which provides websites for small businesses. This should be a nice cross sell with other Intuit products. What's more, Intuit's payroll business is still strong.
But, in today's trading, Intuit's shares are getting slammed – down 11% to $26.53.
Tom Taulli is the author of various books, including The Complete M&A Handbook
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
