IAC/InterActiveCorp Earnings Cheat Sheet: Beats the Street on Profit Rise

IAC/InterActiveCorp (NASDAQ:IACI) reported net income above Wall Street’s expectations for the third quarter. IAC operates internet businesses in the United States and a number of jurisdictions abroad.

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IAC/InterActiveCorp Earnings Cheat Sheet for the Third Quarter

Results: Net income for the catalog and mail order house rose to $65 million (69 cents per share) vs. $17.5 million (16 cents per share) in the same quarter a year earlier. This is a more than threefold rise from the year earlier quarter.

Revenue: Rose 25% to $516.9 million from the year earlier quarter.

Actual vs. Wall St. Expectations: IACI reported adjusted net income of 56 cents per share. By that measure, the company beat the mean estimate of 36 cents per share. It beat the average revenue estimate of $493.6 million.

Quoting Management: “I think it’s an outdated and somewhat inane concept that high growth companies shouldn’t pay dividends,” said IAC’s Chairman and Senior Executive, Barry Diller. “We’ve been growing our earnings consistently, have substantially no debt, and large reserves of cash. We should be and are committed to investing in our businesses wherever prudent, and returning a portion of the balance to our shareholders, in continued opportunistic purchases of the stock (we’ve bought in 42% of the Company’s shares over the last three years) and now, in paying a quarterly dividend.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 20.7%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 25.3% from the year earlier quarter.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 21 cents in the second quarter and by 8 cents in the first quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next quarter performance. Over the past month, the average estimate for the fourth quarter has gone up from 36 cents per share to 37 cents. Over the past three months, the average estimate for the fiscal year has climbed from $1.36 per to share to $1.40.

Competitors to Watch: Google Inc. (NASDAQ:GOOG), Yahoo! Inc. (NASDAQ:YHOO), AOL, Inc. (NYSE:AOL), Answers Corporation (NASDAQ:ANSW), Microsoft Corporation (NASDAQ:MSFT), Demand Media Inc (NYSE:DMD), Baidu.com, Inc. (NASDAQ:BIDU), InfoSpace, Inc. (NASDAQ:INSP), The Knot, Inc. (NASDAQ:KNOT), and Sohu.com Inc. (NASDAQ:SOHU).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)