The 10-second takeaway
For the quarter ended Dec. 31 (Q4), IAC/InterActiveCorp met expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share dropped.
Gross margins expanded, operating margins increased, net margins dropped.
IAC/InterActiveCorp notched revenue of $765.3 million. The 16 analysts polled by S&P Capital IQ anticipated revenue of $758.1 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $596.9 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 $0.70. The 17 earnings estimates compiled by S&P Capital IQ forecast $0.78 per share. GAAP EPS of $0.46 for Q4 were 13% lower than the prior-year quarter's $0.53 per share. (The prior-year quarter included $0.05 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 64.7%, 130 basis points better than the prior-year quarter. Operating margin was 11.1%, 110 basis points better than the prior-year quarter. Net margin was 5.3%, 290 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $775.1 million. On the bottom line, the average EPS estimate is $0.80.
Next year's average estimate for revenue is $3.25 billion. The average EPS estimate is $3.74.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 355 members out of 393 rating the stock outperform, and 38 members rating it underperform. Among 130 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 121 give IAC/InterActiveCorp a green thumbs-up, and nine 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 $60.13.
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