Is IAC's earnings momentum sustainable beyond 2024?

**IAC's earnings momentum appears to be challenging to sustain beyond 2024**, considering the following points:

1. **Recent Performance**: IAC's net income and revenue have shown declines, with a net income of -$199.39 million and total revenue of $989.31 million for the latest reported quarter ending on December 31, 2024. The diluted EPS was -$2.39, reflecting a significant year-over-year growth decline of -164.59%.

|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|IAC|IAC.O|IAC|2024 Q1|-89.17169693657165|-14.257597962133083|-88.8402625820569|185|
|IAC|IAC.O|IAC|2024 Q2|-54.38939212048456|-14.579309439010283|-59.81308411214952|185|
|IAC|IAC.O|IAC|2024 Q3|39.43069521608481|-15.532766270658602|37.923728813559315|185|
|IAC|IAC.O|IAC|2024 Q4|-161.04086943211388|-6.495726980418398|-164.59459459459458|185|

|code|Ticker|Name|Date|Net Income YoY|Net Income|market_code|
|---|---|---|---|---|---|---|
|IAC|IAC.O|IAC|2024 Q1|-89.17169693657165|4.4972E7|185|
|IAC|IAC.O|IAC|2024 Q2|-54.38939212048456|-1.41467E8|185|
|IAC|IAC.O|IAC|2024 Q3|39.43069521608481|-2.37445E8|185|
|IAC|IAC.O|IAC|2024 Q4|-161.04086943211388|-1.9939E8|185|

|code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|IAC|IAC.O|IAC|2024 Q1|-14.257597962133083|9.2968E8|185|
|IAC|IAC.O|IAC|2024 Q2|-14.579309439010283|9.49527E8|185|
|IAC|IAC.O|IAC|2024 Q3|-15.532766270658602|9.38719E8|185|
|IAC|IAC.O|IAC|2024 Q4|-6.495726980418398|9.89307E8|185|

|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|IAC|IAC.O|IAC|2024 Q1|-88.8402625820569|0.51|185|
|IAC|IAC.O|IAC|2024 Q2|-59.81308411214952|-1.71|185|
|IAC|IAC.O|IAC|2024 Q3|37.923728813559315|-2.93|185|
|IAC|IAC.O|IAC|2024 Q4|-164.59459459459458|-2.39|185|

2. **Analyst Expectations**: Analysts forecast a quarterly earnings per share (EPS) of $0.09 for the upcoming release, indicating a year-over-year increase of 112.3%. However, this is significantly lower than the previous quarter's EPS, suggesting a potential decline in earnings momentum.
3. **Revenue Projections**: The anticipated revenues for the upcoming quarter are $936.4 million, which would represent a decline of 11.5% compared to the previous year's quarter. This indicates a potential slowdown in revenue growth.
4. **P/E Ratio and Financial Health Indicators**: IAC's P/E ratio is negative at -5.04, which could suggest that the company is not profitable as per the current market valuation. The P/S ratio is 0.71, and the P/B ratio is 0.53, indicating that the stock may be undervalued based on its sales and book value.

|code|Ticker|Name|Date|P/E(TTM)|P/S|Price to Book Ratio|market_code|
|---|---|---|---|---|---|---|---|
|IAC|IAC.O|IAC|20240410|-40.321644|0|0.7076272423192962|185|
|IAC|IAC.O|IAC|20240411|-39.950908|0|0.7011209754500802|185|
|IAC|IAC.O|IAC|20240412|-38.838698|0|0.6816021748424322|185|
|IAC|IAC.O|IAC|20240415|-38.604972|0|0.6775003979031439|185|
|IAC|IAC.O|IAC|20240416|-38.177819|0|0.6700040469451342|185|
|IAC|IAC.O|IAC|20240417|-37.927975|0|0.6656193888376191|185|
|IAC|IAC.O|IAC|20240418|-38.355128|0|0.6731157397956288|185|
|IAC|IAC.O|IAC|20240419|-38.685567|0|0.6789148037442778|185|
|IAC|IAC.O|IAC|20240422|-39.0782|0|0.6857039517817206|185|
|IAC|IAC.O|IAC|20240423|-39.634388|0|0.6954633520855446|185|

5. **Sector-Wide Challenges**: IAC's segments, such as Dotdash Meredith and Angi Inc., are facing challenges such as reduced service requests and decreasing membership subscription revenues. These factors are likely to impact the company's financial performance in the near term.
6. **Lack of Growth Drivers**: The 3-year CAGRs for net income, revenue, and diluted EPS are -33.12%, -14.72%, and -30.79%, respectively, indicating a prolonged period of decline that does not bode well for future earnings momentum.

In conclusion, while there is a potential for a short-term earnings rebound as indicated by analyst forecasts, the underlying trends and sector-specific challenges suggest that sustaining earnings momentum beyond 2024 will be difficult for IAC. The company's financial performance is closely tied to the health of its various segments, and addressing the declining revenue and net income across these segments will be crucial for ensuring long-term earnings sustainability.