Summary:

Although IAC (NSDQ: IACI) swung to profit in Q2, with net income of $40.8 million ($0.28 cents per share) from last year’s loss of $422 mill…

Although IAC (NSDQ: IACI) swung to profit in Q2, with net income of $40.8 million ($0.28 cents per share) from last year’s loss of $422 million (-$3.02 per share), the company failed to meet analysts expectations. But the Barry Diller-owned company’s continued struggle with search, along with the still dismal online ad market in general, pushed the Media & Advertising unit, which includes Ask.com, Fun Web Products, Dictionary.com and Citysearch, down 10 percent to $168.6 million. In addition to query revenue being down at Ask.com and Fun Web, CitySearch’s problems were attributed to a site relaunch in addition to the difficult display ad market, which has otherwise shown some signs of stabilizing. In all, IAC’s revenue picture in Q2 wasn’t all that dark. Revenues slipped 4 percent to $340 million during the period.

2Q 2009 2Q 2008 Analysts Estimates For 2009
EPS $0.09 NA $0.07
Net Income $40.8M -$422M
Revenue $340M $354M $354M

Earnings release | Webcast | Transcript (via Seeking Alpha)

Not counting one-time charges, IAC earned $0.07 cents per share, missing the projections from analysts polled by Thomson Reuters (NSDQ: TRIN), who expected $0.09 cents per share, AP reported. But IAC did handily surpass the $334.6 million in revenues analysts had anticipated. During the analysts call, Diller sought to put some of the company’s challenges in context, such as noting that display is only “2- to 3 percent” of IAC’s business.

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