Back to top

Analyst Blog

Liberty Interactive Corp. (LINTA - Analyst Report) reported disappointing financial results for the first quarter of 2014. Quarterly net income was $110 million or 22 cents per share compared with $53 million or 18 cents per share in the year-ago quarter. However, first-quarter 2014 earnings per share of 22 cents lagged the Zacks Consensus Estimate of 25 cents.

Quarterly total revenue of $2,447 million reflected a year-over-year improvement of 1% but fell below the Zacks Consensus Estimate of $2,509 million.

Quarterly total operating income came in at $244 million compared with $260 million in the year-ago quarter. In the reported quarter, consolidated adjusted operating income before depreciation and amortization stood at $431 million against $437 million in the year-ago quarter.

From Feb 1, 2014 through Apr 30, 2014, Liberty Interactive repurchased approximately 7.9 million Series A shares for a total consideration of $224.1 million. In the first quarter of 2014, Liberty Interactive generated $526 million of cash from operations compared with $100 million in the year-ago quarter. Free cash flow in the reported quarter was $438 million against $41 million in the prior-year quarter.

At the end of the first quarter of 2014, Liberty Interactive had total consolidated cash and marketable securities of $2,166 million compared with $2,757 million at the end of 2013. Liberty Interactive exited the reported quarter with $7,591 million of outstanding debt compared with $7,384 million at the end of 2013. The debt-to-capitalization ratio at first-quarter end was 0.49 compared with 0.48 at the end of 2013.

QVC, a segment of Liberty Interactive, is the second largest e-commerce retailer in the U.S. after Amazon.com Inc. (AMZN - Analyst Report). Liberty Interactive also holds approximately 38% of HSN Inc. (HSNI - Snapshot Report) and about 22% of the equity and 57% of the total votes of all classes of TripAdvisor Inc. (TRIP - Snapshot Report) common stock. Liberty Interactive currently has a Zacks Rank #3 (Hold).  

QVC Segment

Quarterly total revenue of the QVC segment was $1,986 million, up 1% year over year. Consolidated adjusted OIBDA was $412 million, up 2% year over year. Consolidated operating income stood at $260 million, remaining flat year over year.

Quarterly revenues of QVC U.S. inched up 1% year over year to $1,305 million. Gross margin was 36.4% against 36.1% in the prior-year quarter. Adjusted OIBDA stood at $301 million, up 3.4% year over year. Operating income was $186 million, up 3.3% year over year.

Quarterly revenues of QVC International rose 0.6% year over year to $681 million. Gross margin was 37.4% compared with 37.5% in the prior-year quarter. Adjusted OIBDA was $111 million, down 1.2% year over year. Operating income was $74 million, down 7.5% from the year-ago quarter.

eCommerce Segment

Quarterly revenues at the eCommerce segment totaled $461 million, remaining flat year over year. Quarterly adjusted OIBDA was $23 million, down 41% year over year. Operating loss was $1 million, up 105% year over year.

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
ERBA DIAGNO… ERB 3.80 +7.04%
TRAVELCENTE… TA 11.84 +6.38%
BANCO DO BR… BDORY 14.74 +5.66%
AIR INDUSTR… AIRI 9.99 +4.15%
EQT MIDSTRM… EQM 98.14 +3.38%