InterActiveCorp Lifted by Travel
Barry Diller's InterActiveCorp (IACI) saw second-quarter profit contract due to a huge gain in the year-ago quarter, but posted a 38% rise in revenue thanks to big gains at its Expedia (EXPE) and Hotels.com (ROOM) portfolio companies.
InterActiveCorp, which used to be called USA Interactive, earned $96.2 million, or 16 cents a share, in the latest quarter, on revenue of $1.53 billion. That compares to earnings of $2.28 billion, or $5.51 a share, on revenue of $1.11 billion last year. The year-ago quarter included a gain of $2.38 billion related to its USA Entertainment stake; before that, InterActiveCorp lost $86.7 million, or 22 cents a share.
Earnings from continuing operations were $57.9 million, or 9 cents a share, in the latest quarter. The company also posted "adjusted" earnings of 18 cents a share, which topped the analyst consensus compiled by Thomson First Call by a penny.
Driving revenue was a 73% top-line gain at Expedia and a 47% jump at Hotels.com, reflecting strength in the merchant lodging and international businesses. Overall revenue from electronic retailing was $527 million, up 18%, while HSN's U.S. revenue rose 8%.For all of 2003, InterActive said it expects to meet or exceed its own estimate for adjusted earnings of 75 cents a share. The First Call estimate is for full-year earnings of 78 cents a share. The outlook was sending the shares lower on Instinet. They were recently down $1.90, or 5%, to $37.60. Among other metrics, ticketing revenue grew 7% to $187.5 million from $175.4 million, reflecting higher revenue per ticket, offset by a slight decrease in tickets sold. Personals revenue increased 62% to $48.2 million from $29.7 million.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV