Intuit Stock Takes a Nose Dive

Shares of stock in Intuit Inc., known for its TurboTax, Quicken, and QuickBooks programs, dropped nearly 24% in trading on Friday after the company released news that it would not meet its 2003 growth targets due to unexpected weaker sales of software during tax season.

Prudential Securities analyst Bryan Keane noted that Intuit's sales may be down due to the fact that many computer-using taxpayers have been diverted to the IRS's new FreeFile program that offers free online tax filing services to qualifying taxpayers. Intuit is one of the members of the consortium of software companies offering its online tax preparation and filing services for free through the IRS.

Mr. Keane also made reference to the controversy that has surfaced over the new anti-piracy product activation feature that was added to TurboTax this year. The feature prevents users from installing the software on more than one computer.

In addition, Mr. Keane noted that sales of Intuit's small business accounting software QuickBooks may be flat due to cost cutting measures adopted in the weakened economy.

Intuit stock prices plummeted Friday from $50.89 to $38.72 and rebounded only slightly to $38.94 on Monday after Intuit management announced a plan to buy back $500 million worth of company stock over the next three years.

"We are acquiring new companies to provide platforms for future growth," said Steve Bennett, Intuit's chief executive. "And at the same time, we're using our strong cash position to continue to repurchase our stock."

Related stories:

You may like these other stories...

The law makes it difficult for itemizers to deduct medical expenses. To reap any write-off, you must pay bills that aren't covered by insurance, reimbursed by employers or otherwise satisfied by, for example, a company-...
Drug patents held overseas can pare makers’ tax billsAs the Obama administration tries to stop companies from avoiding taxes by moving their headquarters overseas, the makers of some of the world’s most lucrative...
Starting in October, the IRS will send warning letters to tax return preparers who appear not to be complying with Earned Income Tax Credit (EITC) due diligence requirements.Section 6695(g) of the Internal Revenue Code...

Already a member? log in here.

Upcoming CPE Webinars

Oct 9In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards.
Oct 15This webinar presents the requirements of AU-C 600, Audits of Group Financial Statements (Including the Work of Component Auditors).
Oct 21Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience’s communication style.
Oct 23Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.