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Earnings Preview: IAC

Benzinga·08/01/2025 18:02:31
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IAC (NASDAQ:IAC) will release its quarterly earnings report on Monday, 2025-08-04. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate IAC to report an earnings per share (EPS) of $-0.31.

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.

Historical Earnings Performance

Last quarter the company missed EPS by $1.31, which was followed by a 3.56% drop in the share price the next day.

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

Quarter Q1 2025 Q4 2024 Q3 2024 Q2 2024
EPS Estimate -1.49 0.24 -0.22 -0.47
EPS Actual -2.80 -2.39 -2.93 -1.71
Price Change % -4.0% 6.0% -13.0% 7.000000000000001%

eps graph

IAC Share Price Analysis

Shares of IAC were trading at $39.3 as of July 31. Over the last 52-week period, shares are up 3.96%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Views 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.

The consensus rating for IAC is Outperform, based on 6 analyst ratings. With an average one-year price target of $46.0, there's a potential 17.05% upside.

Comparing Ratings with Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of CarGurus, Grindr and ZoomInfo Technologies, three key industry players, offering insights into their relative performance expectations and market positioning.

  • Analysts currently favor an Neutral trajectory for CarGurus, with an average 1-year price target of $37.33, suggesting a potential 5.01% downside.
  • Analysts currently favor an Outperform trajectory for Grindr, with an average 1-year price target of $26.33, suggesting a potential 33.0% downside.
  • Analysts currently favor an Buy trajectory for ZoomInfo Technologies, with an average 1-year price target of $13.0, suggesting a potential 66.92% downside.

Overview of Peer Analysis

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

Company Consensus Revenue Growth Gross Profit Return on Equity
IAC Outperform -8.62% $365.21M -4.21%
CarGurus Neutral 4.34% $199.71M 8.27%
Grindr Outperform 24.68% $69.40M 28.71%
ZoomInfo Technologies Buy -1.42% $258.40M 1.60%

Key Takeaway:

IAC is positioned at the bottom for Revenue Growth and Gross Profit, while it is in the middle for Return on Equity.

Delving into IAC's Background

IAC Inc is comprised of businesses including Angi Inc, Dotdash Meredith and Care.com, among many others ranging from early stage to established businesses. Its Dotdash Meredith segment consists of its Digital and Print businesses. Angi segment offers repairing and remodeling homes to cleaning and landscaping services. Care.com segment is a online destination for families to connect with caregivers for their children, aging parents, pets and homes and for caregivers to connect with families seeking care services. Search segment consists of a collection of websites providing general search services and information, and a Desktop business, which includes business-to-business partnership operations.

Financial Milestones: IAC's Journey

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: IAC's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2025, the company experienced a revenue decline of approximately -8.62%. This indicates a decrease in the company's top-line earnings. When compared to others in the Communication Services sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: IAC's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of -38.0%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): IAC's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -4.21%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): IAC's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -2.59%, the company may face hurdles in achieving optimal financial performance.

Debt Management: IAC's debt-to-equity ratio is below the industry average at 0.31, reflecting a lower dependency on debt financing and a more conservative financial approach.

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.

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