Shares of IAC Inc (IAC) tumbled 5.14% in after-hours trading on Wednesday, following the release of its subsidiary Angi Inc's quarterly earnings and a series of analyst price target cuts. The sharp decline comes amid a mixed bag of financial results and adjusted outlooks from Wall Street.
Angi Inc (ANGI), a key component of IAC's portfolio, reported quarterly adjusted earnings of 23 cents per share, meeting analyst expectations but falling short of the 70 cents per share reported in the same quarter last year. The company's revenue also declined by 10.5% to $265.63 million, slightly below the $268.95 million analysts had forecasted. This underwhelming performance from a major subsidiary likely contributed to IAC's stock decline.
Adding to the downward pressure, several prominent analysts revised their price targets for IAC lower. UBS cut its target to $39 from $41, Oppenheimer reduced its target to $45 from $55, Truist Securities lowered its target to $52 from $57, and Benchmark trimmed its target to $57 from $60. Despite these reductions, it's worth noting that most analysts maintained their positive ratings on the stock, with the average recommendation still a "Buy." The consensus appears to be that while near-term headwinds exist, the long-term outlook for IAC remains favorable. Investors, however, seem to be focusing on the immediate challenges, as reflected in the after-hours stock movement.
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