CSFB Likes IACI Quarter-Positive GMgn Surprise is 320bp
(IACI) Reit Outperform InterActiveCorp reported results for the March quarter. Revenue in the quarter was $1,471M, above our $1,414M forecast and consensus of $1,436M. The strength in the quarter came from the travel business, with gross bookings up 51% and international bookings up 108%. Adjusted EPS for Q1 were $0.18, beating our estimate of $0.15 and consensus of $0.16. Free cash flow in the quarter was $556M or $0.72/share. Gross margins of 52.6% were well above the 49.4% we forecast, and above the 43.3% posted in Q1`03. OIBA for the quarter was $198 million, above the $157 million we expected, though travel OIBA margins declined from 29.5% y/y to 25.8%. According to management, margins in the merchant hotel business declined 70bp y/y, less than the 100bp decline they have guided to for the full year.
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Got that from a IHub post. |
