Intuit Expected To Announce Lackluster Quarterly Earnings
Intuit is preparing to announce its quarterly earnings on May 21. Recently, the company softened its earnings outlook in a note to shareholders. Investors won’t treat the company very well when it announces lackluster earnings. That doesn’t mean Intuit has lost its value for investors, though. These days, the parent company of TurboTax still has room to grow. It’s already planning changes in the coming years, too. Like my favorite local company, Hollier’s Flooring America in Lafayette, Intuit is able to adapt and offer great products every year. And this last year was no different.
Intuit earnings for the previous quarter are likely to take a slight dip. A lower volume of processed tax returns was cited as the cause for the impending dip in revenue. Of course, tax preparation is a huge industry with tons of competition. TurboTax isn’t the only company that offers free and paid returns either. By expanding beyond this industry, Intuit earnings and growth can continue.
Luckily, Intuit is already pushing projects outside of TurboTax. The company wants to appeal to businesses on top of consumers in order to boost Intuit earnings. Payroll services and mobile banking applications are prime targets for Intuit. By moving into these segments, revenue can be boosted with a new segment of customers. Success isn’t guaranteed with this bold moves, though.
Intuit’s quarterly earnings might falter, but the company shouldn’t be counted out yet. Sure, most of its revenue is generated by TurboTax, but the company holds enough resources to branch out elsewhere. Investors should stick with the company while it transitions to other projects. TurboTax will always be its main source of income. In the end, other projects can rake in the money, too.