Dallas, Texas-based Match Group, Inc. (MTCH) provides dating products, including Tinder, Hinge, Match, Meetic, OkCupid, Pairs, and more. Valued at $9.14 billion by market cap, the company offers a diverse portfolio of apps and services that enable connections across the spectrum of age, race, gender, sexual orientation, and background. The online dating services provider is expected to announce its fiscal second-quarter earnings for 2024 after the market closes on Tuesday, Jul. 30.
Ahead of the event, analysts expect MTCH to report a profit of $0.48 per share on a diluted basis, unchanged from the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. During the previous quarter, MTCH repurchased 5.60 million shares of common stock for $197.60 million.
For the full year, analysts expect MTCH to report EPS of $2.11, down 6.6% from $2.26 in fiscal 2023.
MTCH stock has significantly underperformed the S&P 500’s ($SPX) 22.7% gains over the past 52 weeks, with shares down 23.4% during this period. Similarly, it underperformed the S&P 500 Communication Sector SPDR’s (XLC) 30.1% gains over the same time frame.
On Jul. 16, MTCH shares climbed over 7% after activist investor Starboard Value disclosed a stake of around 6.6% in the company and urged the company to explore a sale or look to turn around its business. Starboard is the third investor after Elliott Investment Management and Anson Funds Management to advocate changes in the company as it struggles with a slowdown in growth. Starboard’s managing member has urged MTCH to cut costs and be more aggressive with share buybacks.
On May 7, MTCH reported its Q1 results. Its EPS of $0.44 exceeded Wall Street expectations of $0.40. The company’s revenue was $859.60 million, topping Wall Street forecasts of $855.90 million. For Q2, MTCH expects its revenue to be between $850 million and $860 million, up 2% to 4% year over year.
Its adjusted operating income is projected to be between $300 million and $305 million, indicating a relatively flat annual growth. For 2024, the company forecasts total revenue growth near the lower end of its previously guided 6% to 9% range. It expects to deliver adjusted operating income margins of at least 36% and free cash flow generation of nearly $1.10 billion. MTCH shares closed down more than 2% on the day the results were released but have been on an uptrend since then.
Analysts’ consensus opinion on MTCH stock is bullish, with a “Moderate Buy” rating overall. Out of 24 analysts covering the stock, 14 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, and nine give a “Hold.” The average analyst price target for MTCH is $39.05, indicating a potential upside of 13.5% from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
