On a cursory level, circumstances don’t seem too auspicious for Intuit (INTU), the software firm known for its TurboTax program. Primarily, the company released mixed results for its latest earnings disclosure, which soured investor sentiment. As well, the IRS inked a deal with Accenture (ACN) to upgrade its system, which might contribute to a direct free filing program that essentially competes with TurboTax.
On the other hand, bullish investors might not want to panic just yet on INTU stock. Arguably more elements about the aforementioned financial disclosure augur well for Intuit than impedes it. In addition, competition from the government regarding tax preparation is largely consequential on the surface. Deeper down, the matter is more complicated but shouldn’t stifle the tax-prep specialist.
