Digital media conglomerate IAC (NASDAQGS:IAC) will be reporting earnings tomorrow after the bell. Here’s what you need to know.
IAC beat analysts’ revenue expectations by 5.9% last quarter, reporting revenues of $989.3 million, down 6.5% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates.
Is IAC a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting IAC’s revenue to decline 13% year on year to $809.2 million, improving from the 14.3% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$4.46 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. IAC has missed Wall Street’s revenue estimates three times over the last two years.
Looking at IAC’s peers in the media & entertainment segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Stride delivered year-on-year revenue growth of 17.8%, beating analysts’ expectations by 3.6%, and IMAX reported revenues up 9.5%, topping estimates by 2.9%. Stride’s stock price was unchanged after the results, while IMAX was down 3.2%.
Read our full analysis of Stride’s results here and IMAX’s results here.
There has been positive sentiment among investors in the media & entertainment segment, with share prices up 11.7% on average over the last month. IAC is up 2.3% during the same time and is heading into earnings with an average analyst price target of $61.22 (compared to the current share price of $35.31).
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