IAC falls short of analyst expectations due to LendingTree. IAC net income dropped by 24 cents a share, but excludinga few verticals (LendingTree) IAC actually beat estimates by 2 cents.

LendingTree revenue fell 41 percent to $63 million because of the deteriorating mortgage market and a decline in real- estate values, IAC said. The unit posted an operating loss of $5.6 million.

We can now have a little more insight to last months changes.

Commenting on results, IAC Chairman and CEO Barry Diller said, “With the exception of LendingTree, this was a satisfactory quarter for IAC. Trends at our businesses are good, and particularly so at HSN, where I believe that Mindy Grossman and her team have now become acclimated and are beginning to demonstrate the great retailing smarts that we knew they were capable of.”

This is from CNN Money:

TRANSACTIONS

Q3 2007      Q3 2006     Growth
Revenue  $ in millions
Ticketmaster                              $301.3       $265.5        13%
LendingTree                                 63.0        106.0       -41%
Real Estate                                    13.8         15.9       -13%
ServiceMagic                                24.6         18.5        33%
Intra-sector elimination              (0.1)         -           NM
$402.6       $405.9        -1%
Operating Income Before Amortization
Ticketmaster                            $61.9        $57.0         9%
LendingTree                              (3.2)        18.8         NM
Real Estate                              (3.9)        (6.3)       38%
ServiceMagic                              5.4          6.0       -10%
$60.3        $75.6       -20%
Operating Income (Loss)
Ticketmaster                            $54.0        $50.5         7%
LendingTree                              (5.6)        15.2         NM
Real Estate                              (4.8)        (8.0)       40%
ServiceMagic                              4.6          5.1        -9%
$48.2        $62.7       -23%

Hold on folks the ride is far from over.

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