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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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. The Motley Fool has no position in any of the stocks mentioned. 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.