Comments on: INTU: Intuit Shareholders Put Tax Refunds to Work http://stockmarketbeat.com/blog1/2007/05/18/intu-intuit-shareholders-put-tax-refunds-to-work/ Our beat: The stock market. Our job: Beat it. Thu, 21 Aug 2008 22:32:40 +0000 http://wordpress.org/?v=2.2.1 By: Intuit’s blow out quarter « AccMan http://stockmarketbeat.com/blog1/2007/05/18/intu-intuit-shareholders-put-tax-refunds-to-work/#comment-31569 Intuit’s blow out quarter « AccMan Sat, 19 May 2007 16:23:26 +0000 http://stockmarketbeat.com/blog1/2007/05/18/intu-intuit-shareholders-put-tax-refunds-to-work/#comment-31569 [...] Intuit surprised everyone except Stock Market Beat with revenues and operating income up 21%. CEO Steve Bennett was in upbeat mood: I’ve never felt better about a quarter or a year and more importantly what it bodes for the future. [...] […] Intuit surprised everyone except Stock Market Beat with revenues and operating income up 21%. CEO Steve Bennett was in upbeat mood: I’ve never felt better about a quarter or a year and more importantly what it bodes for the future. […]

]]> By: Trent http://stockmarketbeat.com/blog1/2007/05/18/intu-intuit-shareholders-put-tax-refunds-to-work/#comment-31244 Trent Fri, 18 May 2007 15:33:30 +0000 http://stockmarketbeat.com/blog1/2007/05/18/intu-intuit-shareholders-put-tax-refunds-to-work/#comment-31244 Yes - you may recall I talked about the <a href="http://stockmarketbeat.com/blog1/2007/03/29/hrb-hr-block-looks-like-its-taking-tax-share-from-intuit/" rel="nofollow"> apparent share shifts</a> before. According to the <a href="http://seekingalpha.com/article/35906" rel="nofollow">conference call</a>: <blockquote>Third-quarter Consumer Tax revenue of $567 million was up 14% over the year-ago period. Season-to-date, Consumer Tax revenue is up 15%. Year-to-date, TurboTax federal units are up 17% on the Web and 6% overall despite passing on some low-priced bulk deals early in the season which would have added about 2 points of growth to our non-Free File Alliance unit numbers.</blockquote> So while web was up strong in units, overall appears slower than HRB. Over time they will have to find the right balance of profits and growth - I don't think that a slower-growth premium strategy is necessarily a bad thing, but you are right that it could be. Yes - you may recall I talked about the apparent share shifts before.

According to the conference call:

Third-quarter Consumer Tax revenue of $567 million was up 14% over the year-ago period. Season-to-date, Consumer Tax revenue is up 15%. Year-to-date, TurboTax federal units are up 17% on the Web and 6% overall despite passing on some low-priced bulk deals early in the season which would have added about 2 points of growth to our non-Free File Alliance unit numbers.

So while web was up strong in units, overall appears slower than HRB. Over time they will have to find the right balance of profits and growth - I don’t think that a slower-growth premium strategy is necessarily a bad thing, but you are right that it could be.

]]> By: Anthony Caswell http://stockmarketbeat.com/blog1/2007/05/18/intu-intuit-shareholders-put-tax-refunds-to-work/#comment-31239 Anthony Caswell Fri, 18 May 2007 15:20:33 +0000 http://stockmarketbeat.com/blog1/2007/05/18/intu-intuit-shareholders-put-tax-refunds-to-work/#comment-31239 While the earnings increase is quite good news, I was wondering if there was any information release of overall returns prepared? The revenue increase can be clearly attributed to the increase in price for their product. With H&R Block's TaxCut increasing around 16% in clients (for software and online), this had to cut into Intuits' client base. If they continue to lose market share and raising prices, they will not be able to meet the streets expectations eventually. While the earnings increase is quite good news, I was wondering if there was any information release of overall returns prepared? The revenue increase can be clearly attributed to the increase in price for their product.

With H&R Block’s TaxCut increasing around 16% in clients (for software and online), this had to cut into Intuits’ client base. If they continue to lose market share and raising prices, they will not be able to meet the streets expectations eventually.

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