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IAC/InterActiveCorp (IAC) Q3 Earnings: What's in the Cards?

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IAC/InterActiveCorp (IAC - Free Report) is set to report third-quarter 2018 results on Nov 7.

The company topped the Zacks Consensus Estimate in the trailing four quarters with average beat of 36.39%.

In the last reported quarter, IAC delivered a positive earnings surprise of 182.93%. Further, its net revenues of $1.06 billion surpassed the Zacks Consensus Estimate of $1.02 billion.

Coming to the price performance, share of IAC have returned 64.6% on a year-to-date basis, outperforming the industry’s rally of 3.3%.

Let’s see how things are shaping up for this announcement.



Factors at Play

IAC’s vast portfolio of online businesses is a major positive and is expected to continue aiding the top line.

The company’s strong hold in Match Group (MTCH - Free Report) , which continues to be a significant driver of its top-line, is expected to benefit third-quarter results. Growing Tinder subscriber base, owing to its strong monetization efforts will continue to aid the company’s revenue generation from this segment.

Further, the integration of HomeAdvisor and Angie’s List (ANGI - Free Report) is expected to boost the services request and engagement from the service professionals on IAC’s network in the to-be-reported quarter.

Additionally, Vimeo with its subscription software continues to gain momentum in the market. Expanding subscriber base and growing SaaS revenues are anticipated to drive the company’s top-line.

Moreover, the company’s growing publishing segment is likely to benefit its results in the to-be-reported quarter, due to the execution of key strategies of displaying few but effective ads, building strong content and offering fast sites.

All these strong endeavors of IAC are expected to boost top-line growth in third-quarter 2018.

IAC/InterActiveCorp Price and EPS Surprise

 

IAC/InterActiveCorp Price and EPS Surprise | IAC/InterActiveCorp Quote

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

IAC has a Zacks Rank #2 but an Earnings ESP of +8.7%, which makes surprise prediction difficult.

Other Stocks That Warrant a Look

Here is another stock worth considering as our model shows that it too has the right combination of elements to deliver an earnings beat in the upcoming releases.

Adobe Systems (ADBE - Free Report) has an Earnings ESP of +0.19% and Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

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Adobe Inc. (ADBE) - free report >>

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Match Group Inc. (MTCH) - free report >>

IAC Inc. (IAC) - free report >>

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