How does IAC's Q4 earnings performance set the tone for 2025?

IAC's Q4 earnings performance does not set a positive tone for 2025, as indicated by several factors:

1. **Revenue Decline**: IAC's revenue has shown annualized declines of 14.1% over the last two years. This trend of decreasing revenue is not a positive indicator for the company's future performance in 2025.
2. **Earnings Per Share (EPS) Trend**: The company's EPS has declined by 71.6% annually over the last five years while its revenue grew by 8.7%. This suggests that the company has been less profitable on a per-share basis, which could negatively impact investor confidence for the upcoming year.
3. **Return on Invested Capital (ROIC)**: IAC's five-year average ROIC was negative 6.2%, meaning management lost money while trying to expand the business. A negative ROIC is a red flag for investors, as it indicates inefficiency and potential financial strain.
4. **Analyst Ratings and Price Targets**: The average analyst price target for IAC is $35.56, with a high estimate of $100.00 and a low estimate of $44.50. The fact that the average target is below the current trading price could suggest that analysts are cautious about the stock's future performance.
5. **Recent Performance**: Since October 2024, IAC's stock price has dropped 32.8% to $34.97 per share. This decline in value could reflect investor disappointment in the company's direction and may influence investor sentiment for the new year.

In conclusion, IAC's Q4 earnings performance, coupled with the aforementioned factors, does not bode well for a strong performance in 2025. Investors may need to exercise caution and closely monitor the company's strategic moves and financial performance in the coming months.