IAC/InterActiveCorp Q3 Profit Tops View, But Shares Plunge 14% As Revenues Miss

(RTTNews) - Shares of IAC/InterActiveCorp. (IACI) plunged 14 percent in extended trading on Tuesday after the operator of Internet businesses reported revenues for the third quarter that missed analysts' expectations. However, profit for the quarter more than doubled from last year, and topped their estimates, reflecting lower costs and expenses as well as revenue growth.

The New York-based company which runs About.com, Match.com, Ask.com and other Web sites posted net income of $96.9 million or $1.13 per share for the third quarter, sharply higher than $40.7 million or $0.43 per share in the prior-year quarter.

Income from continuing operations for the quarter surged to $91.72 million or $1.08 per share from $46.19 million or $0.49 per share last year.

Excluding one-time items, adjusted net income for the quarter was $111.44 million or $1.29 per share, compared to $67.45 million or $0.71 per share in the year-ago quarter.

On average, 18 analysts polled by Thomson Reuters expected the company to report earnings of $0.95 per share for the quarter. Analysts' estimates typically exclude one-time charges and gains.

Total revenues for the quarter grew 5.6 percent to $756.87 million from $714.47 million in the same quarter last year, but missed eighteen Wall Street analysts' consensus estimate of $805.27 million.

Revenues for the search and applications or websites, rose 10 percent year-over-year to $407.3 million, and match or core, meetic and developing, revenues grew 13 percent to $201.1 million from last year.

Meanwhile, local revenues decreased 26 percent year-over-year to $62.8 million, and media revenue declined 3 percent to $51.0 million from last year. Other revenues improved 21 percent year-over-year to $35.1 million.

Operating income for the quarter was $122 million, sharply higher than $78 million in the year-ago quarter. Total costs and expenses were $635 million, down from $636 million in the prior-year quarter.

Further, the company also declared a quarterly cash dividend of $0.24 per share, payable on December 1 to IAC stockholders of record as of the close of business on November 15, 2013.

IACI closed Tuesday's regular trading session at $57.90, up $0.88 or 1.54% on a volume of 2.05 million shares. However, the stock plummeted $7.90 or 13.64% in after-hours trading.