IACI Earnings Sneak Peek

IAC/InterActiveCorp (NASDAQ:IACI) will unveil its latest earnings on Wednesday, October 24, 2012. IAC operates internet businesses in the United States and a number of jurisdictions abroad.

IAC/InterActiveCorp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 51 cents per share, a rise of 24.4% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 55 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 52 cents during the last month. For the year, analysts are projecting net income of $2.27 per share, a rise of 4.6% from last year.

Last quarter, the company came in at profit of 66 cents per share against a mean estimate of net income of 55 cents per share, beating estimates after missing them in the previous quarter. In the first quarter, it missed forecasts by 2 cents.

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Wall St. Revenue Expectations: Analysts predict a rise of 33.8% in revenue from the year-earlier quarter to $691.6 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.1 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company improved this liquidity measure from 2.05 in the first quarter to the last quarter driven in part by an increase in current assets. Current assets increased 18.7% to $1.28 billion while liabilities rose by 16.2% to $609.5 million.

Stock Price Performance: Between July 25, 2012 and October 18, 2012, the stock price rose $1.48 (2.9%), from $51.18 to $52.66. The stock price saw one of its best stretches over the last year between September 26, 2012 and October 5, 2012, when shares rose for eight straight days, increasing 4.5% (+$2.32) over that span. It saw one of its worst periods between April 13, 2012 and April 24, 2012 when shares fell for eight straight days, dropping 7.8% (-$3.87) over that span.

Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 35.5% over the last four quarters.

There has enjoyed solid performance recently heading into this earnings announcement with profit rising by a year-over-year average of 80% for the last four quarters.

The company raised its gross margin by 2.6 percentage points in the in the second quarter. Revenue rose 40.2% while cost of sales rose 30.4% to $236.7 million from a year earlier.

A Look Back: In the second quarter, profit rose 2.1% to $43.3 million (47 cents a share) from $42.4 million (44 cents a share) the year earlier, exceeding analyst expectations.

Analyst Ratings: With seven analysts rating the stock a buy, none rating it a sell and four rating the stock a hold, there are indications of a bullish stance by analysts.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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