Match Group Poised to Report Earnings Amid Ongoing Challenges
Analysts Watch for Fourth-Quarter Results as Stock Struggles
Match Group, Inc. (MTCH), based in Dallas, Texas, is a well-known player in the online dating industry. With a market cap of $7.7 billion, the company operates popular dating platforms like Tinder, Hinge, OkCupid, and Match. It is set to reveal its fiscal fourth-quarter earnings for 2024 on Tuesday, February 4.
As the anticipated announcement approaches, analysts project MTCH will report earnings of $0.54 per share on a diluted basis. This marks a 33.3% decrease from the $0.81 per share earning in the same quarter last year. Notably, the company’s recent quarterly reports have consistently met or exceeded Wall Street’s EPS estimates.
For the entire fiscal year, analysts expect MTCH to report an EPS of $1.94, down 14.2% from $2.26 reported in fiscal 2023. Looking ahead, they forecast a recovery with EPS expected to climb 9.8% year-over-year to $2.13 in fiscal 2025.
Over the past year, MTCH stock has significantly lagged behind the S&P 500’s gains of 21.8%, experiencing a decline of 20.6% instead. The stock also trailed the Communication Services Select Sector SPDR Fund’s (XLC) impressive 30% increase during the same period.
The drop in MTCH’s stock price can largely be attributed to declining paid subscriptions and fewer new user sign-ups—particularly on Tinder. Compounding this, the company faces tight competition in the online dating market, alongside economic pressures that are impacting consumer spending. Furthermore, fluctuations in foreign exchange rates and challenges with acquiring new users in late Q3 have negatively affected its monthly active users.
However, on November 6, shares of MTCH rose more than 2% after the company reported its Q3 results. The reported revenue of $895.5 million was slightly below Wall Street’s expectations of $900.3 million, but the EPS of $0.51 exceeded analyst projections of $0.46. For Q4, MTCH anticipates revenue to fall between $865 million and $875 million.
The consensus view among analysts covering MTCH stock is moderately optimistic, reflected in a “Moderate Buy” rating overall. Out of 25 analysts, 11 recommend a “Strong Buy,” one opts for a “Moderate Buy,” while 13 suggest holding the stock. The average price target set by analysts stands at $36.88, suggesting a potential upside of 19.7% from current levels.
On the date of publication,
Neha Panjwani
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
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
