Market Overview

How Did Intuit's Competition React To Weak Guidance?

How Did Intuit's Competition React To Weak Guidance?

Intuit Inc. (NASDAQ: INTU) took a 3.5 percent dive on Wednesday following its Q2 earnings release.

Intuit actually delivered strong beats on both earnings and revenue on the quarter. The company reported EPS of $0.08, well ahead of expectations of a $0.02 loss. The tech giant also reported revenue of $754 million on the quarter, far surpassing consensus estimates of $733 million.

However, the market wasn’t impressed with Intuit's forward guidance, and investors have been dumping the stock.

Related Link: Intuit Earnings Just A Bump In The Road During Strong Year For "Old Tech"

But what does Intuit’s weakness say about the company’s top competitors? Intuit provides small business accounting software (QuickBooks) and tax preparation software (TurboTax). Here’s a look at how a handful of Intuit’s competitors have reacted to the company’s weak guidance since Tuesday’s close:

  • H & R Block Inc (NYSE: HRB) shares are up 0.95 percent.
  • Paychex, Inc. (NASDAQ: PAYX) shares are up 0.58 percent.
  • Automatic Data Processing (NASDAQ: ADP) shares are down 0.16 percent.
  • Liberty Tax Inc (NASDAQ: TAX) shares are up 1.52 percent.
  • Blucora Inc (NASDAQ: BCOR) shares are down 0.56 percent.

Overall, it seems as though the market doesn’t see Intuit’s loss as the competition’s gain.

Despite the post-earnings selloff, Intuit has been the top tax services play so far in 2016. Intuit is up 14 percent in 2016. Shares of H&R Block and Liberty Tax are down compared to 26.5 percent and 41 percent, respectively.

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