Back to top

Analyst Blog

On Mar 25, 2014, we issued an updated research report on Liberty Media Corp. (LMCA - Analyst Report). Liberty Media is steadily restructuring its business model, targeting to control several subscription-based businesses. The company has started providing cable TV services and management is striving to consolidate its foothold in the pay-TV market.

Except for one quarter, Liberty Media has delivered positive earnings surprise in three quarters last year, with an average beat of 386.15%. The company reported mixed financial results for the fourth quarter of fiscal 2013 with the bottom line beating the Zacks Consensus Estimate but the top line missing the same.

Currently, Liberty Media controls around 53% stake of SIRIUS XM Radio. With nearly 25.6 million subscribers in its kitty, SIRIUS XM, the largest satellite radio service provider, is expected to generate huge financial synergies to Liberty Media. Furthermore, the company also raised its stake to 27% in Live Nation Entertainment, the largest concert promoter and ticketing company in the U.S.

Liberty Media invested $204 million to purchase preferred stocks of Barnes & Noble – the world’s largets bookseller – which can be converted into approximately 12 million shares of the latter. Most importantly, Barnes & Noble has an extensive digital business through its powerful e-book reader called the “Nook”. We believe the decision to invest in Barnes & Noble will considerably bolster Liberty Media’s financials.

Liberty Media, which holds a 27.3% stake in Charter Communications Inc. (CHTR - Analyst Report), was aggressively pursuing the idea of the company acquiring Time Warner Cable Inc. (TWC - Analyst Report). However, Charter Communications has lost to Comcast Corp. (CMCSA - Analyst Report) in its bid to acquire Time Warner Cable. It disrupted Liberty Media’s plans to gain significant traction in the U.S. cable industry.

Liberty Media currently carries a Zacks Rank #3 (Hold).

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
RPC INC RES 24.91 +8.35%
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%