IACI Second Quarter Earnings Sneak Peek

IAC/InterActiveCorp (NASDAQ:IACI) will unveil its latest earnings tomorrow, Wednesday, July 25, 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 analyst estimate is for net income of 55 cents per share, a rise of 17% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 52 cents. Between one and three months ago, the average estimate moved up. It has risen from 54 cents during the last month. Analysts are projecting profit to rise by 3.2% compared to last year’s $2.10.

Past Earnings Performance: Last quarter, the company missed estimates by 2 cents, coming in at profit of 29 cents per share versus a mean estimate of net income of 31 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by 18 cents.

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A Look Back: In the first quarter, profit rose 90.8% to $34.5 million (38 cents a share) from $18.1 million (19 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 39.2% to $640.6 million from $460.2 million.

Wall St. Revenue Expectations: Analysts predict a rise of 36.8% in revenue from the year-earlier quarter to $664.1 million.

Stock Price Performance: From June 20, 2012 to July 23, 2012, the stock price rose $2.43 (5.31%), from $45.72 to $48.22. The stock price saw one of its best stretches over the last year between October 4, 2011 and October 14, 2011, when shares rose for nine straight days, increasing 12.9% (+$4.78) 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 30.6% 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 more than twofold for the last four quarters.

Analyst Ratings: There are five out of nine analysts surveyed (55.6%) rating IAC/InterActiveCorp a buy.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.05 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.

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

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