Shares of Match Group dropped 5.7% in Wednesday’s pre-market trading after the online dating company’s 4Q earnings fell short of Street estimates. Meanwhile, quarterly revenues and its 2021 sales outlook beat analysts’ expectations.
Match Group’s (MTCH) 4Q adjusted earnings of $0.48 per share remained flat year-over-year but lagged Street estimates by a penny. The company’s 4Q revenues of $651.4 million jumped about 19% year-over-year and exceeded consensus estimates of $648.8 million.
Average subscriber numbers increased 12% year-over-year to 10.9 million, driven by higher demand for dating apps like Tinder, Hinge, Meetic, Pairs, BLK, and Chispa. Average revenue per user (ARPU) rose 5% year-over-year to $0.62.
As for 2021, the company foresees sales in the range of $2.75 to $2.85 billion. Analysts were looking for $2.39 billion in revenues.
On Jan. 28, Wells Fargo analyst Brian Fitzgerald raised the stock’s price target to $160 (6.6% upside potential) from $140 and maintained a Hold rating.
In a note to investors, Fitzgerald said that he continues to expect strong performance from the company in 2021 amid improving economic fundamentals supported by vaccine distribution news, ease of quarantine restrictions, and a likely third stimulus package in the U.S.
Overall, the consensus among analysts is a Moderate Buy based on 6 Buys and 4 Holds. The average analyst price target of $152 implies upside potential of about 1.3% to current levels. Shares have gained 46.1% in over the past six months.
The TipRanks’ stock investors tool shows that investors currently have a Very Negative stance on MTCH.