Media and internet company IAC/InterActive (IAC) - Get IAC/InterActiveCorp. Report topped analysts' third-quarter estimates, following a session where the stock dropped on a disappointing outlook from its Match Group (MTCH) - Get Match Group, Inc. Report subsidiary.
The New York company reported earnings of $1.35 a share, easily topping analyst estimates of $1.07. The latest figure was a 9% drop from a year earlier.
The company reported a 13% increase in revenue to $1.25 billion, also topping estimates of $1.24 billion.
The stock of Match Group, which is responsible for nearly 40% of IAC's quarterly revenue, has been under pressure. It fell by 3.4% on Tuesday.
Match, which owns dating sites including Tinder, said it expected revenue in the current quarter of between $545 million and $555 million. Analysts surveyed by FactSet had been looking for $559.1 million.
Match Group accounted for $541.5 million of IACI's revenue in the third quarter, a 22% increase from a year earlier. The increased competition resulted in the company's subscriber growth falling sharply and prompted its fourth-quarter outlook.
The parent of Angie's List services-review and -rating platform was responsible for $357.4 million, or 29%, of IAC's $1.24 billion quarterly revenue.