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Liberty Interactive (QVCA) Lags Q2 Earnings, Tops Revenues

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Liberty Interactive Corp. reported mixed financial results in the second quarter of 2016. While the top line outpaced the Zacks Consensus Estimate, the bottom line lagged the same.

GAAP net income came in at $127 million or 26 cents per share compared with a net income of $242 million or 24 cents per share in the prior-year quarter. Second-quarter earnings per share of 26 cents were well below the Zacks Consensus Estimate of 34 cents.

Meanwhile, the quarter’s total revenue of $2,424 million reflected a year-over-year increase of 21.3%, surpassing the Zacks Consensus Estimate of $2,393 million.

Quarterly total operating income came in at $254 million compared with $284 million in the year-ago quarter. In the reported quarter, consolidated adjusted operating income before depreciation and amortization was $487 million compared with $445 million in the year-ago quarter.

In the first half of 2016, Liberty Interactive generated $672 million of cash from operations compared with $598 million in the prior-year quarter. Free cash flow in the reported period was $547 million, up from $494 million in the year-ago period.

At the end of the second quarter of 2016, Liberty Interactive had total cash and marketable securities of $2,280 million compared with $2,449 million at the end of 2015. The company exited the second quarter with $8,227 million of outstanding debt compared with $8,707 million at the end of 2015. The debt-to-capitalization ratio at the end of the reported quarter was 0.48 compared with 0.52 at 2015 end.

QVC Segment

Quarterly revenues at the QVC division were up 3% year over year to $2,063 million. Revenues from the QVC U.S. segment were $1,428 million, up 2% year over year. Revenues from the QVC International segment were $635 million, up 7% year over year. QVC U.S. OIBDA (operating income before depreciation and amortization) was $363 million, up 4% while QVC International OIBDA was $100 million, flat year over year. 

zulily Segment

Quarterly revenues at the zulily segment totaled $366 million, up 23.2% year over year. Quarterly adjusted OIBDA was $31 million, up a substantial 121.4%. Meanwhile, operating loss was $43 million in the reported quarter as against an operating income of $5 million in the prior-year quarter.

Zacks Rank & Stocks to Consider

Liberty Interactive currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space include Insight Enterprises Inc. (NSIT - Free Report) , Cincinnati Bell Inc. and Telecom Italia S.p.A. . All three stocks currently carry a Zacks Rank #2 (Buy).

LIBERTY M INT-A Price, Consensus and EPS Surprise

LIBERTY M INT-A Price, Consensus and EPS Surprise | LIBERTY M INT-A Quote

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