IAC Gears Up to Report Q2 Earnings: Here's What to Expect

IAC Inc. IAC is scheduled to release second-quarter 2024 results on Aug 6 after market close.

The company's earnings outperformed the Zacks Consensus Estimate twice in the preceding four quarters, met the estimate once and missed on the remaining occasion, the average surprise being negative 51.4%. In the last reported quarter, it reported a loss of 93 cents per share, narrower than the Zacks Consensus Estimate of a loss of $1.14 per share.

Let's see how things have shaped up for IAC this earnings season.

Factors Likely to Have Shaped the Quarterly Performance

Persistent weakness in the company's service business and decreasing membership subscription revenues in the ads and leads business are expected to have weighed on the Angi segment's sales. The consensus mark for the segment's revenues is pegged at $301.7 million, indicating a 19.6% dip from the year-ago reported number.

The reduction in marketing by affiliate partners, which caused fewer visitors to ad-supported search and content websites, is expected to have hurt the Search segment. The Zacks Consensus Estimate for the segment's revenues is pegged at $110.1 million, which implies a 37.8% decline from the year-ago reported number.

Also, the softness in Mosaic Group and Care.com businesses is likely to have dented the Emerging & Other segment's revenues. The Zacks Consensus Estimate for the segment's revenues is pegged at $101.4 million, indicating a 31.4% drop from the year-ago reported number.

Nevertheless, IAC's Dotdash Meredith segment is likely to have performed well driven by its strategic partnership and licensing agreement with OpenAI. Also, the positive response to the company's D/Cipher intent-targeting advertising solution in the market is likely to aid its results.

However, the ongoing migration of audience and advertising spending from print to digital within the print business is likely to have partially offset the gains. The Zacks Consensus Estimate for Dotdash Meredith segment's revenues is pegged at $422 million, which indicates 1.9% growth from the year-ago reported number.

Amid this backdrop, the Zacks Consensus Estimate for the company's second-quarter total revenues is pegged at $948.9 million, which indicates a decrease of 14.6% from the year-ago quarter's reported figure. The consensus estimate for adjusted loss is pinned at 39 cents per share, indicating a 48.7% increase from the year-ago quarter's reported number.

Earnings Whispers

Our proven model does not predict an earnings beat for IAC this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.

Earnings ESP: IAC has an Earnings ESP of 0.00% as both the Zacks Consensus Estimate and the Most Accurate Estimate are pegged at a loss of 39 cents per share.

Zacks Rank: IAC presently carries a Zacks Rank #3 (Hold).

Stocks to Consider

Here are some companies, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.

Emerson Electric Co. EMR has an Earnings ESP of +0.14% and a Zacks Rank of 2 at present.

The company is scheduled to release second-quarter results on Aug 7. 

EMR's earnings have surpassed the Zacks Consensus Estimate thrice in the preceding four quarters while missing the mark once, the average surprise being 10.7%.

ITT Inc. ITT has an Earnings ESP of +1.03% and a Zacks Rank of 3 at present. The company is slated to release second-quarter results on Aug 1.

ITT's earnings have surpassed the Zacks Consensus Estimate thrice and matched once in the trailing four quarters, the average surprise being 6.5%.

Chart Industries, Inc. GTLS has an Earnings ESP of +12.52% and a Zacks Rank of 3 at present.

The company is slated to release second-quarter results on Aug 2. Chart Industries' earnings have surpassed the Zacks Consensus Estimate twice in the trailing four quarters and missed the mark twice.

To read this article on Zacks.com click here.