IAC Bests Street Estimates in Fourth Quarter
The online company IAC (NASDAQ:IACI), headed by Barry Diller, posted better than expected earnings when it reported its fourth quarter on Wednesday. The group reported $48.8 million in profits, with adjusted earnings rising 150 percent to $67.4 million. Profits were actually off 44 percent from a year ago because of previously reported one time gains. Fourth quarter revenue was $596.9 million, a rise of 32 percent, which IAC claimed was a company record.
IAC oversees online content producers such as CollegeHumor and Electus. It reported a significant loss on the Newsweek Daily Beast join venture of about $9.6 million. Part of that was an impairment charge of $5.7 million, which was likely caused by a decline in the value of that asset. IAC’s media unit saw an increase in revenue of 8 percent to $72.4 million, but an operating loss of about $3 million. Ben Silverman’s Electus was cited as a key reason for revenue growth.
The company has now topped analyst estimates for the last four quarters. It beat the mark by 5 cents in the third quarter, by 21 cents in the second quarter, and by 8 cents in the first quarter.
The outlook for the company’s next quarter performance is unfavorable. Estimates have gone down from an average 30 cents per share to 27 cents over the past seven days. The average estimate for the fiscal year is $1.29 per share, down from $1.40 ninety days ago.
Here’s how IACI shares reacted to earnings:
IAC/InterActiveCorp. (NASDAQ:IACI): IACI shares recently traded at $46.67, up $3.6, or 8.36%. They have traded in a 52-week range of $28.31 to $43.89. Volume today was 3,878,368 shares versus a 3-month average volume of 974,298 shares. The company’s trailing P/E is 20.41, while trailing earnings are $2.29 per share.