Piper Jaffray Keeps Outperform on InterActive

Still, analyst Safa Rashtchy says the media giant's first quarter was weak

Piper Jaffray keeps its outperform rating on InterActive (IACI ).

Analyst Safa Rashtchy says InterActive reported a weak first quarter with travel revenues and margins below his estimate, dropping faster than he anticipated. He notes there's not enough strength in other segments to offset this. Both the $1.471 million in revenues and the $43 million in operating income were below his $1.498 million and $69 million estimates, respectively.

Rashtchy believes InterActive will be at the mid-to-low end of its $415 million to $416 million 2004 operating income guidance. He expects the stock to be weak unless there is significant positive comments during a confernce call today, especially as it relates to travel revenues and margins.

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