The 10-second takeaway
For the quarter ended June 30 (Q2), IAC/InterActiveCorp beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share improved significantly.
Gross margins improved, operating margins grew, and net margins shrank.
IAC/InterActiveCorp recorded revenue of $680.6 million. The 14 analysts polled by S&P Capital IQ looked for a top line of $666.1 million on the same basis. GAAP reported sales were 40% higher than the prior-year quarter's $485.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.86. The 15 earnings estimates compiled by S&P Capital IQ anticipated $0.72 per share. GAAP EPS of $0.52 for Q2 were 21% higher than the prior-year quarter's $0.43 per share. (The prior-year quarter included -$0.03 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 65.2%, 260 basis points better than the prior-year quarter. Operating margin was 14.3%, 230 basis points better than the prior-year quarter. Net margin was 6.4%, 230 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $671.0 million. On the bottom line, the average EPS estimate is $0.73.
Next year's average estimate for revenue is $2.67 billion. The average EPS estimate is $2.75.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 338 members out of 375 rating the stock outperform, and 37 members rating it underperform. Among 126 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 116 give IAC/InterActiveCorp a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on IAC/InterActiveCorp is outperform, with an average price target of $57.38.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.