IAC Earnings Beat Estimates as Investors Await Vimeo Spinoff

Updated Feb. 3, 2021 4:39 pm ET / Original Feb. 3, 2021 4:05 pm ET Order Reprints Print Article Text size IAC/InterActiveCorp. shares are up 25.4% so far this year. Dreamstime Internet holding company IAC/InterActiveCorp. posted strong fourth-quarter results, while investors continue to focus on the coming spinoff of the company’s Vimeo video-editing software business. At least in theory, IAC’s (ticker: IAC) report shouldn’t be surprising since the company reports results by product line monthly and previously provided a December-quarter update. Nonetheless, revenue of $848.8 million was up 27% from a year ago, ahead of the stale Wall Street consensus forecast of $814 million. Profits were $5.59 a share, dramatically above the Street consensus forecast for a loss of 55 cents a share, reflecting an unrealized gain of $439.6 million on the company’s 12% stake in MGM Resorts (MGM). IAC invested $1 billion in MGM in August; that position is now worth about $1.7 billion. In after hours trading, IAC shares were up 2.9%. Vimeo revenue was $83.8 billion, up 54% from a year ago, with subscribers up 24% to 1.5 million. Operating loss in the unit was $800,000, and adjusted Ebitda (earnings before interest, taxes, depreciation, and amortization) was…
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