IAC/InterActiveCorp reported financial results for Q4 and year-end last night.  The numbers appear to be a little misleading:

• Q4 profit fell 98%
• Q$ net income fell to $2.69 million (down from $119.5 million)
• Sales increased 7.8%
• Sales in the "Service" businesses increased 8%
• Media & Advertising saw sales increases of 46% (due mostly to increased popularity of Ask.com)

At first glace it would like like IAC had a rotten fourth quarter.  But the numbers presented are greatly influenced by the company's write down of it's entertainment coupon division.  Including the coupon division write down, EPS were 0.01 cents.  Adjusted EPS, however, were 67%.

As misleading as the numbers might sound, IAC had a great Q4 and 2006 as far as company growth is concerned.  In fact, according to a report at Bloomberg.com, out of 15 analysts being tracked by the company, none had tacked a "Sell" rating on IAC stock (5 had "Buy" ratings and 10 had "Hold" ratings assigned the stock).

With promises of more integration of services, and the opening of a new office in Atlanta, 2007 looks to be an even better year for IAC.