IAC Reports Better Than Exected Revenue

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IAC Reports Better Than Exected Revenue

By: Nathan Weinberg
2007-02-09

IAC/InterActiveCorp reported earnings Tuesday, and the Ask.com parent beat earnings estimates by posting a 67 cents a share profit, compared with analyst estimates of 52 cents.

Not all was well, though, as net income on continuing operations was hit bad by a write down of the coupon division, dropping 98% from $119.5 million to $2.69 million compared with last year's fourth quarter (total net income fell from $113.1 million to $16.7 million).

Total revenue was $1.823 billion, up 7.8% from $1.691 billion a year earlier. Total revenue for 2006 was $6.277 billion, up from $5.416 billion in 2005, a 15.9% increase. The Media and Advertising division, which is made up of Ask.com, Citysearch and Evite, saw revenue grow from $109.5 million to $159.8 million, a 46% increase. Operating income was also up 81%, from $7.7 million to $13.9 million.
(via SELand)

IAC stock has been doing very well the last 18 months, up 57.61%. However, go back an extra week, and the stock is down over 25%, from a high of $53.58 on July 22, 2005, to the current price of $39.94. If the current recovery continues, IAC may reach its old high in a little over a year.

What caused IAC to shed 52% of its stock price in four weeks? I can't find any records of it, so if anyone can fill me in, I'd appreciate it.

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About the Author:
Nathan Weinberg writes the popular InsideGoogle blog, offering the latest news and insights about Google and search engines.

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