Despite an expected dip in profit, analysts are generally optimistic about IAC/InterActive as it prepares to reports its second-quarter earnings on Wednesday, July 30, 2014. The consensus earnings per share estimate is 73 cents per share.
The consensus estimate has fallen over the past three months, from 87 cents. Analysts are expecting earnings of $3.35 per share for the fiscal year. A year after being $799.4 million, analysts expect revenue to fall 1% year-over-year to $794.4 million for the quarter. For the year, revenue is expected to come in at $3.20 billion.
The company has been profitable for the last eight quarters, and for the last four, profit has risen year-over-year by an average of 56%. The biggest gain came in the third quarter with a more than twofold surge.
The company has seen declines in revenue in the past two quarters. In the first quarter, revenue declined 7% to $740.2 million from the year earlier quarter. In the fourth quarter, the figure fell 5%.
The majority of analysts (54%) rate IAC/InterActive as a buy. That percentage is still below the mean analyst rating of eight similar companies, which average 62% buys.
Earnings estimates provided by Zacks.
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