Intuit's Stock Price Drops Nearly Half Despite Rising Operating Margins
Intuit (INTU) has seen its stock price fall to $367, nearly half of its recent high at $694.29, amid unmet expectations during the tax season and ongoing securities class actions related to alleged misstatements about its tax business performance. Despite this decline in share value, Intuit's operating margin has continued to rise, reaching 27.5% over the trailing twelve months. The company attributes part of its price loss to a small segment—12% of TurboTax’s addressable market—where it lost ground with lower-income DIY filers. Meanwhile, revenue from Global Business Solutions grew by 15%, and QuickBooks Advanced saw online ecosystem growth around 38%. Intuit is also cutting full-time staff by 17%, aiming to boost bottom-line profitability while maintaining mid-teens annual earnings-per-share (EPS) growth guidance for the coming years. The stock currently trades at a relatively low multiple of trailing earnings, raising questions about whether this represents an undervaluation or a warning sign.
Topics: intuit operating_margin revenue_growth stock_price turbotax