Digital media conglomerate IAC (NASDAQGS:IAC) will be announcing earnings results this Monday after market close. Here’s what to look for.
IAC missed analysts’ revenue expectations by 2.4% last quarter, reporting revenues of $586.9 million, down 7.5% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.
Is IAC a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting IAC’s revenue to decline 6.2% year on year to $602 million, improving from the 13.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.10 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.
Looking at IAC’s peers in the media & entertainment segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Stride delivered year-on-year revenue growth of 12.7%, beating analysts’ expectations by 0.7%, and IMAX reported revenues up 16.6%, topping estimates by 0.6%. Stride traded down 54.3% following the results while IMAX was also down 1.1%.
Read our full analysis of Stride’s results here and IMAX’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the media & entertainment stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.8% on average over the last month. IAC is down 5.7% during the same time and is heading into earnings with an average analyst price target of $48.69 (compared to the current share price of $32.63).
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