Benzinga | Feb 2, 2021 10:14AM EST

Earnings Outlook for IAC/InterActiveCorp

IAC/InterActiveCorp (NASDAQ:IAC) unveils its next round of earnings this Wednesday, February 03. Here is Benzinga's everything-that-matters guide for the earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Based on management's projections, IAC/InterActiveCorp analysts modeled for a loss of $0.67 per share on sales of $801.90 million. In the same quarter last year, IAC/InterActiveCorp announced EPS of $1.08 on revenue of $1.22 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate when it reports Wednesday, EPS would have fallen 162.04%. Sales would be down 34.16% from the same quarter last year. IAC/InterActiveCorp's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate -0.54 2.12 0.11 1.14EPS Actual 0.11 -1.13 0.01 1.08Revenue Estimate 762.05 M 1.21 B 1.21 B 1.23 BRevenue Actual 788.38 M 726.36 M 1.23 B 1.22 B

Stock Performance

Shares of IAC/InterActiveCorp were trading at $220.33 as of February 01. Over the last 52-week period, shares are up 107.21%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. IAC/InterActiveCorp is scheduled to hold the call at 08:30:00 ET and can be accessed here.