Intuit’s IRS Delay Exposure Looks Manageable (INTU)

The revenues would still be seen this year, but would be pushed out into the following quarter.  Taking a look at estimates shows that Thomson Reuters has a consensus of $927.9 million in revenues and $0.39 EPS for the current quarter in question.  To show just how dependent the company is on tax season in April, Thomson Reuters shows consensus estimates of $2.15 EPS and $1.78 billion in revenues for the next quarter which includes the tax filing season in April.  That quarter would account for almost half of the annual revenues with estimates of $3.82 billion and the bulk of its earnings as the July fiscal year earnings are expected to be $2.41 EPS.

Intuit further noted that the IRS delay is not expected to impact full-year revenue or operating income for Intuit or the Consumer Tax and Accounting Professionals segments.

Shares have not closed above $50.00 yet in 2011.  Despite having hit $50.00 and higher on seven trading days since December 21, 2010 when it did close at $50.08, there have been no other $50+ closing prices and Thursday’s close of $48.30 was the lowest since December 13, 2010.

This IRS issue is an obvious overhang.  The company is now trying to demonstrate that it is not a wipe-out for its revenues.  Intuit has traded in a range of $29.00 to $50.54 over the last 52-weeks and shares are indicated down 0.75% at $47.94 on very thin indications this Friday morning.

JON C. OGG