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.