Examining the Future: IAC's Earnings Outlook

IAC IAC is gearing up to announce its quarterly earnings on Monday, 2024-11-11. Here's a quick overview of what investors should know before the release.

Analysts are estimating that IAC will report an earnings per share (EPS) of $-0.28.

The announcement from IAC is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Performance in Previous Earnings

During the last quarter, the company reported an EPS missed by $1.24, leading to a 6.51% increase in the share price on the subsequent day.

Here's a look at IAC's past performance and the resulting price change:

Tracking IAC's Stock Performance

Shares of IAC were trading at $54.37 as of November 06. Over the last 52-week period, shares are up 21.28%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Perspectives on IAC

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on IAC.

IAC has received a total of 2 ratings from analysts, with the consensus rating as Buy. With an average one-year price target of $88.0, the consensus suggests a potential 61.85% upside.

Peer Ratings Comparison

In this comparison, we explore the analyst ratings and average 1-year price targets of ZoomInfo Technologies, CarGurus and Yelp, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• The consensus outlook from analysts is an Neutral trajectory for ZoomInfo Technologies, with an average 1-year price target of $9.0, indicating a potential 83.45% downside.
• As per analysts' assessments, CarGurus is favoring an Outperform trajectory, with an average 1-year price target of $32.58, suggesting a potential 40.08% downside.
• For Yelp, analysts project an Neutral trajectory, with an average 1-year price target of $35.0, indicating a potential 35.63% downside.

Peer Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for ZoomInfo Technologies, CarGurus and Yelp, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

IAC ranks at the bottom for Revenue Growth and Gross Profit, with negative percentages indicating a decline in these areas. The company also has the lowest Return on Equity among its peers, reflecting lower profitability relative to shareholder equity. Overall, IAC's performance lags behind its peers in key financial metrics.

Get to Know IAC Better

IAC is an internet media company with segments that include Angi (33% of total revenue), Dotdash Meredith (39%), search (14%), and emerging and other (14%). The firm spun off the narrow-moat dating app provider Match Group in second-quarter 2020 and the no-moat video software provider Vimeo in second-quarter 2021.

Financial Milestones: IAC's Journey

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Decline in Revenue: Over the 3 months period, IAC faced challenges, resulting in a decline of approximately -14.58% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Communication Services sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of -14.98%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): IAC's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -2.34%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): IAC's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -1.38%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: With a below-average debt-to-equity ratio of 0.33, IAC adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for IAC visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.