- Intuit misses revenue estimates for key tax season.
- Shares of Intuit fell 7.5% on Wednesday following the report.
- CEO Sasan Goodarzi warned of the possibility of the IRS allowing Americans to directly file their taxes for free electronically, without the need for a third-party provider like Intuit.
Intuition (INTU) shares fell 7.5% on Wednesday after tax filing software maker TurboTax’s sales fell short of expectations during the key tax filing season.
Intuit reported revenue for the fiscal third quarter of 2023 rose 6.9% to $6.02 billion, beating analysts’ estimates. Earnings of $8.92 per share beat estimates.
The company noted that the results reflected its outlook for the full fiscal year. It expects a total decrease of 2%. Internal Revenue Service (IRS) returns and do-it-yourself share will decrease by 0.75%. Intuit explained that it believes that’s because those who filed their tax returns in the past few years to receive pandemic stimulus money and tax credits didn’t file this season.
Still, Intuit CEO Sasan Goodarzi explained that Intuit is increasing its revenue in 2023, operating profitand the earnings per share (EPS) ratio.
Goodarzi also warned of the possibility Internal Revenue Service (IRS) allows Americans to directly file their taxes electronically for free without the need for a third-party provider like Intuit. Goodarzi argued that such a move would “cost taxpayers billions of dollars”. The idea was part of $80 billion in IRS upgrades included last year Inflation Reduction Act. Last week, Treasury Secretary Janet Yellen told the IRS to move forward with tests of the prototype system.