Here's What Analysts Are Forecasting For IAC Inc. (NASDAQ:IAC) After Its Full-Year Results

The annual results for IAC Inc. (NASDAQ:IAC) were released last week, making it a good time to revisit its performance. The results overall were pretty much dead in line with analyst forecasts; revenues were US$5.2b and statutory losses were US$13.55 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on IAC after the latest results.

See our latest analysis for IAC

Taking into account the latest results, IAC's 15 analysts currently expect revenues in 2023 to be US$5.21b, approximately in line with the last 12 months. Losses are predicted to fall substantially, shrinking 79% to US$2.78. Before this earnings announcement, the analysts had been modelling revenues of US$5.22b and losses of US$2.75 per share in 2023.

The consensus price target was unchanged at US$82.60, suggesting that the business - losses and all - is executing in line with estimates. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic IAC analyst has a price target of US$135 per share, while the most pessimistic values it at US$46.00. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 0.6% by the end of 2023. This indicates a significant reduction from annual growth of 19% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 9.1% per year. It's pretty clear that IAC's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. The consensus price target held steady at US$82.60, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple IAC analysts - going out to 2025, and you can see them free on our platform here.

It might also be worth considering whether IAC's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.