IAC/InterActiveCorp Tops Estimates

Shares of IAC/InterActiveCorp ( IACI) rose Wednesday after the company announced third-quarter earnings that beat Wall Street estimates.

The company said net income fell 4.2% to $71.8 million, or 24 cents a share.

Adjusted for certain items, the company earned 37 cents a share; analysts polled by Thomson Financial were expecting 35 cents a share, compared to 35 cents in the same period a year ago.

Revenue came in at $1.5 billion, up 7% from the same period last year and in line with analysts' projections.

Operating income at the company's two largest units, retailing and transactions, fell 26% and 23%, respectively.

In its retailing unit, which includes Home Shopping Network, gross margins were hurt by higher inventory reserves and increased shipping and handling costs.

Profit in the company's transactions unit was hurt by its LendingTree division. "Revenue declined primarily due to fewer loans sold into the secondary market, lower revenue per loan sold, and fewer loans closed at the exchange," the company said in a press release. "Revenue from all home loan products declined with home equity declining the fastest, driven by the overall mortgage market deterioration as well as the decline in real estate values."

IACI also announced it had repurchased 8 million shares of its common stock at an average price of $27.54 between July 31 and Oct. 26. The company has now repurchased 15.6 million shares of its common stock for about $500 million year to date, and has authorization to repurchase 50.8 million more shares.

In recent Wednesday trading, shares of IAC were up 72 cents, or 2.5%, to $29.11.

More from Technology

Elon Musk's Latest Twitter Tirade Is the Dumbest Thing on Wall Street

Elon Musk's Latest Twitter Tirade Is the Dumbest Thing on Wall Street

Flashback Friday: Amazon, Chip Stocks, Memorial Day

Flashback Friday: Amazon, Chip Stocks, Memorial Day

Some Companies Are Already Feeling the Effect of GDPR

Some Companies Are Already Feeling the Effect of GDPR

Experts Break Down GDPR Risks for Investors

Experts Break Down GDPR Risks for Investors

Netflix Ready to Surpass Disney as America's Most Valuable Media Company

Netflix Ready to Surpass Disney as America's Most Valuable Media Company