Intuit, the parent company of TurboTax is set to announce its quarterly earnings on May 21st. The general consensus is that the figures will be somewhat lacklustre, which won’t go down too well with most investors. However, Intuit still has plenty of room to grow and has announced various changes during the coming years, which should deflect some of the attention from any poor Intuit earnings.
The slight decrease in revenue over the previous quarter has been blamed on fewer tax returns being received and processed. Although TurboTax is known for offering both free and paid tax returns, it is not the only company that offers that service, making it a competitive market. Intuit earnings can increase if the company is able to expand into other areas.
There are projects other than TurboTax that Intuit is looking at, and two of the biggest prime targets are mobile banking applications and payroll taxes. The company can potentially attract a whole new group of customers, to boost Intuit earnings although these moves do not guarantee success.
Intuit should definitely not be dismissed just because the earnings are not as strong as they could be. The company has sufficient resources to grow in other areas, despite the fact that Turbo Tax obviously accounts for much of its revenue. Investors should not give up on Intuit while the company explores other options and these certainly have the potential to be profitable, although TurboTax will always be the main source of revenue.