Back to top

Analyst Blog

Liberty Interactive Corp. (LINTA - Analyst Report) reported mixed financial results for the second quarter of 2013. Quarterly net income was $120 million or 23 cents per share compared with $234 million or 42 cents per share in the year-ago quarter. Second-quarter 2013 earnings fell below the Zacks Consensus Estimate of 27 cents. Quarterly total revenue of $2,647 million reflected a yearly improvement of 11.9% and was well above the Zacks Consensus Estimate of $2,428 million.

Quarterly total operating income came in at $284 million compared with $290 million in the year-ago quarter. In the reported quarter, consolidated adjusted OIBDA was $455 million, remaining same year over year. In the reported quarter, Liberty Interactive repurchased approximately 9.6 million Class A shares for a total consideration of $219.6 million.  

In the first half of 2013, Liberty Interactive generated $446 million of cash compared with $730 million in the year-ago period. Free cash flow in the reported period was $310 million compared with $579 million in the prior-year period.

At the end of the first half of 2013, Liberty Interactive had total consolidated cash and marketable securities of $3,321 million compared with $4,479 million at the end of 2012. Liberty Interactive exited the reported quarter with $6,988 million of outstanding debt compared with $7,884 million at the end of 2012. The debt-to-capitalization ratio was 0.46 at the end of second-quarter 2013 compared with 0.45 at the end of 2012.

According to Internet Retailer, after Amazon.com Inc. (AMZN - Analyst Report), QVC was the second-largest e-commerce retailer in the U.S. in 2012. QVC has become the market leader in the U.S. TV home-shopping business, far ahead of its nearest rivals, HSN Inc. (HSNI - Snapshot Report) and ValueVision Media Inc. (VVTV - Snapshot Report). Liberty Interactive currently has a Zacks Rank #3 (Hold).  

QVC Segment

Quarterly total revenue of the QVC segment was $1,961 million, down 1% year over year. Consolidated adjusted OIBDA was $434 million, down 1% year over year. Consolidated operating income was $285 million, down 5% year over year.

Quarterly revenues of QVC U.S. inched up 3% year over year to $1,312 million. Gross margin was 37.3% compared with 37.2% in the year-ago quarter. Adjusted OIBDA was $320 million, up 2% year over year. Operating income was $207 million, down 3.3% year over year.

Quarterly revenues of QVC International inched down 6% year over year to $649 million. Gross margin was 37.8% compared with 38.1% in the year-ago quarter. Adjusted OIBDA was $114 million, down 7% year over year. Operating income was $78 million, down 10% year over year.

eCommerce Segment

Quarterly revenues of the eCommerce Business segment were $439 million, up 12% year over year. Quarterly adjusted OIBDA was $26 million, up 13% year over year. Operating loss doubled year over year to $2 million in the reported quarter.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%
NUSTAR GP H… NSH 41.14 +2.59%