Yahoo Finance Earnings Update: IAC Inc. (NASDAQ:IAC) Just Reported Its Yearly Results And Analysts Are Updating Their Forecasts
The full-year results for IAC Inc. (NASDAQ:IAC) were released last week, making it a good time to revisit its performance. The results overall were pretty much dead in line with analyst forecasts; revenues were US$5.2b and statutory losses were US$13.55 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on IAC after the latest results.
Check out our latest analysis for IAC
Following last week's earnings report, IAC's 15 analysts are forecasting 2023 revenues to be US$5.21b, approximately in line with the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 79% to US$2.78. Before this earnings announcement, the analysts had been modelling revenues of US$5.22b and losses of US$2.75 per share in 2023.
The consensus price target was unchanged at US$82.60, suggesting that the business - losses and all - is executing in line with estimates. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic IAC analyst has a price target of US$135 per share, while the most pessimistic values it at US$46.00. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 0.6% by the end of 2023. This indicates a significant reduction from annual growth of 19% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 9.1% per year. It's pretty clear that IAC's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that IAC's revenues are expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on IAC. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for IAC going out to 2025, and you can see them free on our platform here..
It might also be worth considering whether IAC's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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