Match Group (MTCH) Q3 Earnings Report Preview: What To Look For

Dating app company Match (NASDAQ:MTCH) will be reporting earnings tomorrow after market hours. Here’s what to expect.

Match Group met analysts’ revenue expectations last quarter, reporting revenues of $864.1 million, up 4.2% year on year. It was a slower quarter for the company, with a decline in its users and underwhelming revenue guidance for the next quarter. It reported 14.84 million users, down 5% year on year.

Is Match Group a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Match Group’s revenue to grow 2.2% year on year to $900.9 million, slowing from the 8.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.79 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Match Group has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Match Group’s peers in the consumer subscription segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Netflix delivered year-on-year revenue growth of 15%, meeting analysts’ expectations, and Roku reported revenues up 16.5%, topping estimates by 4.5%. Netflix’s stock price was unchanged after the results, and Roku’s price followed a similar reaction.

Read our full analysis of Netflix’s results here and Roku’s results here.

There has been positive sentiment among investors in the consumer subscription segment, with share prices up 6.3% on average over the last month. Match Group is down 3.3% during the same time and is heading into earnings with an average analyst price target of $43.29 (compared to the current share price of $36.30).

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.