IAC/InterActiveCorp. Second Quarter Earnings Sneak Peek

IAC/InterActiveCorp. (NASDAQ:IACI) will unveil its latest earnings on Wednesday, July 27, 2011. IAC operates internet businesses in the United States and a number of jurisdictions abroad. Its businesses segments are: Search, Match and ServiceMagic and Media & Other. Exclusive: Media Legend Larry Kramer Says Media Business is in a Gutenberg Moment>>

IAC/InterActiveCorp. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 26 cents per share, a rise of 8.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 24 cents. For the year, analysts are projecting net income of $1.18 per share, a rise of 807.7% from last year.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the first quarter, it reported profit of 22 cents per share against a mean estimate of net income of 14 cents per share. In the fourth quarter of the last fiscal year, it missed forecasts by 16 cents.

Wall St. Revenue Expectations: On average, analysts predict $463.4 million in revenue this quarter, a rise of 15% from the year ago quarter. Analysts are forecasting total revenue of $1.9 billion for the year, a rise of 15.9% from last year’s revenue of $1.64 billion.

Analyst Ratings: Analysts seem relatively indifferent about IAC/InterActiveCorp with nine of 16 analysts surveyed maintaining a hold rating.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 19.8%, 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’s gross margin shrank by 2.2 percentage points in the in the first quarter. Revenue rose 19.2% while cost of sales rose 26.9% to $172.7 million from a year earlier.

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), Sohu.com Inc. (NASDAQ:SOHU), NewsCorp (NASDAQ:NWSA), Amazon (NASDAQ:AMZN), eBay (NASDAQ:EBAY), Rediff.com India Ltd. (NASDAQ:REDF).

Stock Price Performance: During April 26, 2011 to July 21, 2011, the stock price had risen $3.64 (10.8%) from $33.74 to $37.38. The stock price saw one of its best stretches over the last year between October 15, 2010 and October 29, 2010 when shares rose for 11-straight days, rising 10.3% (+$2.61) over that span. It saw one of its worst periods between July 5, 2011 and July 12, 2011 when shares fell for six-straight days, falling 3.6% (-$1.40) over that span. Shares are up $8.68 (+30.2%) year to date.

(Source: Xignite Financials)

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