The maker of QuickBooks saw its stock price slide recently despite the firm reporting better-than-expected quarterly earnings.intuit_logo(1)

Intuit officials reported adjusted earnings of $3.43 per share on revenue of $2.3 billion, which was way above Wall Street’s estimates of $3.19 per share on $2.25 billion, according to the Associated Press. The financial software firm, which also produces TurboTax, is looking at revenue growth of 11 or 12 percent for the fiscal year.

“This was simply a great season for TurboTax,: said Intuit CEO Brad Smith.

However, as the software firm earned more than expected this past tax season, subscribers to QuickBooks Online saw a lower than expected growth rate for the third quarter in a row.

“I think it has to do with expectations and the seasonality of the stock,” said Crawford del Prete of IDC, a firm which does research of information technology companies and markets. “They had a great quarter. My bet is that there’s skepticism that demand can continue without the seasonal strength that tax season represents.”

In prior quarters, Intuit saw growth rates of more than 50 percent, according to Brad Reback, an analyst with Stifel, a brokerage and investment banking firm.

“We believe these early data points are likely an early indication that Intuit is now in the midst of fighting an increasingly uphill battle against the law of large numbers,” Reback said.

S&P Global kept with its “hold” opinion on Intuit stock shares and Wedbush, a financial services and investment firm, kept “neutral” on the stock.

Brent Thill, an analyst with UBS, a firm providing financial services in more than 50 countries, said many experts are over-analyzing things with Intuit and QuickBooks Online.

Intuit’s challenges, he said, are “less concerning than many think.”

In a research note, he said UBS’ positive view of Intuit remains unchanged.


Sansone Accounting & Tax is a provider of QuickBooks services. Sansone is known for guiding clients through planning and preparation decisions to minimize tax liabilities and help increase their business efficiency. Whether it is transitioning to QuickBooks or lowering business taxes, the firm prides itself on being available to play a major role in financial, record-keeping and tax-planning issues. To schedule an appointment with one of Sansone’s certified public accountants, call (815) 459-4300.