Benchmark Raises Price Target on IAC/InterActiveCorp (IACI), Company Sees Growth Across the Board
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Price: $50.68 -2.86%
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
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Benchmark is reaffirming its Hold rating on shares of IAC/InterActiveCorp (NASDAQ: IACI), but is raising its price target from $36 to $47.
The company released its Q2 results with $485 million in revenue, which topped the firms estimate by $21 million and the Street's by $16 million. The firm notes that Media and ServiceMagic segments were ahead by $6 million. Search OIBA increased 58 percent year-over-year, with the margin up roughly 4 percentage points to 20 percent.
IAC launched 24 new proprietary toolbars in 2010, 6 in Q1 2011, and 11 in Q2 2011. The company also added 49 new toolbar distribution partners in 2010 and 18 partners in 2Q11. Toolbars this quarter represented around half of search revenue and 26 percent of total revenue.
The Board authorized an additional 15 million shares for repurchase, estimated to total $630 million, which is not that bad as the company finished the quarter with $1.27 billion in cash.
The firm increased its 2011 revenue growth estimate from 16 percent to 21 percent and its EBITDA estimate from $338 million to $379 million. Benchmark is currently forecasting 2011 EPS of $2.18 and $2.62 for 2012.
For more ratings news on IAC/InterActiveCorp click here and for the rating history of IAC/InterActiveCorp click here.
Shares of IAC/InterActiveCorp closed at $42.04 yesterday.
The company released its Q2 results with $485 million in revenue, which topped the firms estimate by $21 million and the Street's by $16 million. The firm notes that Media and ServiceMagic segments were ahead by $6 million. Search OIBA increased 58 percent year-over-year, with the margin up roughly 4 percentage points to 20 percent.
IAC launched 24 new proprietary toolbars in 2010, 6 in Q1 2011, and 11 in Q2 2011. The company also added 49 new toolbar distribution partners in 2010 and 18 partners in 2Q11. Toolbars this quarter represented around half of search revenue and 26 percent of total revenue.
The Board authorized an additional 15 million shares for repurchase, estimated to total $630 million, which is not that bad as the company finished the quarter with $1.27 billion in cash.
The firm increased its 2011 revenue growth estimate from 16 percent to 21 percent and its EBITDA estimate from $338 million to $379 million. Benchmark is currently forecasting 2011 EPS of $2.18 and $2.62 for 2012.
For more ratings news on IAC/InterActiveCorp click here and for the rating history of IAC/InterActiveCorp click here.
Shares of IAC/InterActiveCorp closed at $42.04 yesterday.
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