IAC Inc. Q2 Sales Disappoint, Analysts Lower Forecasts
ByAinvest
Wednesday, Aug 6, 2025 8:59 am ET1min read
IAC--
Key Takeaways
IAC's EPS of $2.57 was a substantial positive surprise compared to the forecast of a negative $0.2927. However, revenue came in at $586.9 million, missing the forecast by 2.4%. This mixed result reflects both operational strengths and market challenges. The company's digital revenue grew by 9%, driven by advertising and performance marketing, while it reduced its dependency on Google traffic from 52% to 28% [2].
Market Reaction
Following the earnings announcement, IAC's stock fell by 13.41% to $37.2. This decline suggests that investors are concerned about the revenue miss and broader market conditions, despite the positive EPS surprise. The stock remains within its 52-week range of $32.05 to $55.4 [2].
Analyst Ratings
Analysts at Oppenheimer and Truist Securities maintained their "Outperform" and "Buy" ratings, respectively, but lowered their price targets to $55 and $57 [1].
Outlook
IAC has tightened its full-year EBITDA guidance to a range of $247 million to $285 million. The company is targeting long-term digital revenue growth of 10% and plans to expand its Decipher Plus platform significantly. Continued investment in Care.com and exploring CTV advertising opportunities are key strategic focuses [2].
References:
[1] https://www.nasdaq.com/articles/iac-iac-q2-earnings-beat-estimates
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-iacs-q2-2025-eps-surprises-stock-falls-13-93CH-4170868
OPY--
IAC Inc. reported Q2 earnings of $2.57 per share, beating estimates of a loss of 27 cents per share, but missing sales expectations of $601.28 million with $586.9 million. Shares fell 13% to $34.38. Analysts at Oppenheimer and Truist Securities maintained their "Outperform" and "Buy" ratings, respectively, but lowered their price targets to $55 and $57.
IAC Inc. (IAC) reported its Q2 2025 earnings, delivering an EPS of $2.57 per share, significantly exceeding the Zacks Consensus Estimate of a loss of $0.27 per share [1]. The company's revenue, however, fell short of expectations, coming in at $586.9 million compared to the forecasted $601.35 million [1]. Despite the earnings surprise, IAC's stock price dropped 13.41% to $37.2 in after-hours trading, reflecting investor concerns over the revenue miss and broader market conditions [2].Key Takeaways
IAC's EPS of $2.57 was a substantial positive surprise compared to the forecast of a negative $0.2927. However, revenue came in at $586.9 million, missing the forecast by 2.4%. This mixed result reflects both operational strengths and market challenges. The company's digital revenue grew by 9%, driven by advertising and performance marketing, while it reduced its dependency on Google traffic from 52% to 28% [2].
Market Reaction
Following the earnings announcement, IAC's stock fell by 13.41% to $37.2. This decline suggests that investors are concerned about the revenue miss and broader market conditions, despite the positive EPS surprise. The stock remains within its 52-week range of $32.05 to $55.4 [2].
Analyst Ratings
Analysts at Oppenheimer and Truist Securities maintained their "Outperform" and "Buy" ratings, respectively, but lowered their price targets to $55 and $57 [1].
Outlook
IAC has tightened its full-year EBITDA guidance to a range of $247 million to $285 million. The company is targeting long-term digital revenue growth of 10% and plans to expand its Decipher Plus platform significantly. Continued investment in Care.com and exploring CTV advertising opportunities are key strategic focuses [2].
References:
[1] https://www.nasdaq.com/articles/iac-iac-q2-earnings-beat-estimates
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-iacs-q2-2025-eps-surprises-stock-falls-13-93CH-4170868
Stay ahead of the market.
Get curated U.S. market news, insights and key dates delivered to your inbox.
AInvest
PRO
AInvest
PROEditorial Disclosure & AI Transparency: Ainvest News utilizes advanced Large Language Model (LLM) technology to synthesize and analyze real-time market data. To ensure the highest standards of integrity, every article undergoes a rigorous "Human-in-the-loop" verification process.
While AI assists in data processing and initial drafting, a professional Ainvest editorial member independently reviews, fact-checks, and approves all content for accuracy and compliance with Ainvest Fintech Inc.’s editorial standards. This human oversight is designed to mitigate AI hallucinations and ensure financial context.
Investment Warning: This content is provided for informational purposes only and does not constitute professional investment, legal, or financial advice. Markets involve inherent risks. Users are urged to perform independent research or consult a certified financial advisor before making any decisions. Ainvest Fintech Inc. disclaims all liability for actions taken based on this information. Found an error?Report an Issue
Comments
No comments yet