What Are Analysts Expecting From IAC/InterActiveCorp (NASDAQ:IAC) In The Year Ahead?
As IAC/InterActiveCorp (NASDAQ:IAC) announced its recent earnings release on 30 June 2019, the consensus outlook from analysts appear pessimistic, with profits predicted to drop by 11% next year against the past 5-year average growth rate of 29%. With trailing-twelve-month net income at current levels of US$627m, the consensus growth rate suggests that earnings will decline to US$555m by 2020. Below is a brief commentary around IAC/InterActiveCorp's earnings outlook going forward, which may give you a sense of market sentiment for the company. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
See our latest analysis for IAC/InterActiveCorp
How will IAC/InterActiveCorp perform in the near future?
Over the next three years, it seems the consensus view of the 19 analysts covering IAC is skewed towards the positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To understand the overall trajectory of IAC's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
From the current net income level of US$627m and the final forecast of US$1.0b by 2022, the annual rate of growth for IAC’s earnings is 27%. This leads to an EPS of $11.22 in the final year of projections relative to the current EPS of $7.52. Margins are currently sitting at 15%, which is expected to expand to 16% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For IAC/InterActiveCorp, I've put together three pertinent factors you should look at:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is IAC/InterActiveCorp worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether IAC/InterActiveCorp is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of IAC/InterActiveCorp? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
