Match Group Q3 Earnings Preview: Time To Swipe Right Yet?

Dallas, Texas, based Match Group Inc MTCH is set to report its third-quarter earnings after the market closes on Oct. 31.

The company is a leading player in the online dating industry. Match Group has a diverse portfolio of dating apps that cater to different demographics and dating preferences such as Tinder, Match.com, OkCupid, PlentyOfFish, and Hinge.

Here’s a look at key metrics that Wall Street analysts will be closely watching, what they expect from the earnings report, and how the stock is placed currently, relative to consensus expectations.

Match Group Q3 Earnings – Key Items to Watch

Match Group generates revenue through a combination of subscription services, in-app purchases, and advertising. Although Tinder’s recent difficulties have had an impact on results, Match has an unparalleled portfolio of leading dating brands, including the recently launched Hinge, which puts it in a strong position to resume rapid growth.

Additionally, Match has strong profit margins and cash flow, which comfortably offset its reasonable debt load.

The Q3 results will reveal whether it’s time to swipe right on this stock as it trades at an attractive P/E of 12.1 and an unrivalled portfolio of dating apps.

Also Read: Your Mom And Friends Can Now Help You Swipe Left Or Right On Your Tinder Matches

MTCH Stock: Analyst Ratings & Consensus Estimates

For the third-quarter, Wall Street analysts are expecting Match Group to report 54 cents in EPS and $881.14 million in revenue. For the fiscal period ending December 2023, the company is expected to report $2.81 in EPS and $3.39 billion in revenue.

Recent analyst reports from 26 analysts over the last 90 days rate the stock a Buy with an average consensus price target of $54.88. Over the past month, we’ve seen most sell-side analysts maintain their ratings for Match Group stock.

Justin Patterson of Keybanc maintains Overweight with a $60 price target on the stock while Cory Carpenter of JP Morgan maintained Overweight with a price target of $60. Mohammed Khallouf of HSBC has initiated coverage at $47.10.

MTCH Stock Price Action

The stock is down over 10% over the past month and was trading 1.75% higher to $34.64 at the time of publication Tuesday.

Read Next: Amazon Q3 Earnings Showcase Resilience: 3 Key Catalysts Strengthen Fundamental Value

Photo: Shutterstock