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IAC Gears Up to Report Q1 Earnings: Here's What to Expect

Zacks Equity Research
·4-min read

IAC Inc. IAC is scheduled to release first-quarter 2024 results on May 07, after market close.

The company has a lackluster earnings surprise history, having outperformed the Zacks Consensus Estimate in one of the preceding four quarters while matching in one and missing in the other two, the average beat being negative 77.8%. In the last reported quarter, it reported a loss of 73 cents per share, which missed the Zacks Consensus Estimate of a loss of 20 cents per share by 265%.

Let’s see how things have shaped up for IAC this earnings season.

Key Factors to Note

The planned reduction in the circulation of certain publications within the print business and weakness in advertising, and licensing & other end markets within the digital business are expected to have hurt IAC’s Dotdash Meredith segment in the first quarter of 2024.  The Zacks Consensus Estimate for the segment’s revenues is pegged at $382 million, implying a 1.6% decline from the year-ago reported number.

Reduced service requests in the service business and decreasing membership subscription revenues in the ads and leads business are likely to have weighed on the Angi Inc. segment’s sales. The consensus mark for the segment’s revenues is pegged at $302 million, indicating a 23% dip from the year-ago reported number.

Also, the reduction in marketing by affiliate partners, which caused fewer visitors to ad-supported search and content websites, is expected to have hurt the Search segment. The Zacks Consensus Estimate for the segment’s revenues is pegged at $131 million, implying a 13.8% decline from the year-ago reported number.

Decreases in revenues at Mosaic Group and IAC Films are likely to have dented the Emerging & Other segment’s revenues. The Zacks Consensus Estimate for the segment’s revenues is pegged at $126 million, suggesting an 18.2% drop from the year-ago reported number.

Given the company’s extensive geographic presence, its operations are subject to global political risks and foreign exchange headwinds. A stronger U.S. dollar is likely to have hurt IAC's overseas business.

The Zacks Consensus Estimate for the company’s first-quarter 2024 revenues is pegged at $938 million, suggesting a decrease of 13.8% from the year-ago quarter’s reported figure. The consensus estimate for the company’s adjusted earnings is pinned at $1.14 per share, indicating a 44.7% decrease from the year-ago quarter’s reported number.

However, investment in cost in digital and D/Cipher is expected to bolster the company’s top-line results. Also, the decreasing cost of sales is likely to have supported IAC’s bottom-line performance.

IAC Inc. Price and EPS Surprise

IAC Inc. price-eps-surprise | IAC Inc. Quote

Earnings Whispers

Our proven model does not predict an earnings beat for IAC this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.

Earnings ESP: IAC has an Earnings ESP of -43.40% as the Most Accurate Estimate is pegged at a loss of $1.63 per share, which is higher than the Zacks Consensus Estimate of a loss of $1.14 per share. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: IAC presently carries a Zacks Rank #4 (Sell).

Stocks to Consider

Here are some companies within the broader Industrial Products sector, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.

Greif, Inc. GEF has an Earnings ESP of +3.37% and a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is slated to release second-quarter fiscal 2024 (ended April 2024) results on Jun 5. GEF delivered a trailing four-quarter earnings surprise of 150.6%, on average.

Clear Secure, Inc. YOU has an Earnings ESP of +17.65% and a Zacks Rank of 1, at present.

The company is slated to release first-quarter results on May 8. YOU delivered a trailing four-quarter earnings surprise of 136.4%, on average.

DNOW Inc. DNOW has an Earnings ESP of +2.13% and a Zacks Rank of 3. The company is slated to release first-quarter 2024 results on May 10.

DNOW’s earnings have surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missing the mark in one, the average beat being 15.6%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Zacks Investment Research