The 10-second takeaway
For the quarter ended Sep. 30 (Q3), IAC/InterActiveCorp beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped significantly.
Gross margins shrank, operating margins grew, net margins contracted.
IAC/InterActiveCorp logged revenue of $714.5 million. The 15 analysts polled by S&P Capital IQ expected to see sales of $693.1 million on the same basis. GAAP reported sales were 38% higher than the prior-year quarter's $516.9 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 $0.71. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.67 per share. GAAP EPS of $0.43 for Q3 were 38% lower than the prior-year quarter's $0.69 per share. (The prior-year quarter included -$0.04 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 63.3%, 20 basis points worse than the prior-year quarter. Operating margin was 10.9%, 40 basis points better than the prior-year quarter. Net margin was 5.7%, 690 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $729.3 million. On the bottom line, the average EPS estimate is $0.80.
Next year's average estimate for revenue is $2.74 billion. The average EPS estimate is $2.81.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 340 members out of 378 rating the stock outperform, and 38 members rating it underperform. Among 119 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 111 give IAC/InterActiveCorp a green thumbs-up, and eight 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 $58.67.
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