A month has gone by since the last earnings report for Liberty Interactive Corporation . Shares have added about 3.7% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Liberty Interactive Q3 Earnings Beat, Revenues Miss
GAAP net income came in at $148 million or $0.31 per share compared with a net income of $190 million or $0.33 per share in the prior-year quarter. Adjusted earnings per share of $0.31 were ahead of the Zacks Consensus Estimate of $0.29.
Meanwhile, the quarter’s total revenue of $2,303 million reflected a year-over-year increase of 14.7% but lagged the Zacks Consensus Estimate of $2,319.5 million.
Quarterly total operating income came in at $167 million compared with $264 million in the year-ago quarter. In the reported quarter, consolidated adjusted operating income before depreciation and amortization was $406 million compared with $421 million in the year-ago quarter.
In the first nine months 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 third 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 third 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 down 3% year over year to $1,948 million. Revenues from the QVC U.S. segment were $1,338 million, down 6% year over year. Revenues from the QVC International segment were $610 million, up 4% year over year. QVC U.S. OIBDA (operating income before depreciation and amortization) was $308 million, down 8% year over year while QVC International OIBDA was $85 million, down 12% year over year.
zulily Segment
Quarterly revenues at the zulily segment totaled $359 million, up 23.2% year over year. Quarterly adjusted OIBDA was $18 million, up a substantial 121.4%. Meanwhile, operating loss was $52 million in the reported quarter as against an operating income of $5 million in the prior-year quarter.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter. In the past month, the consensus estimate has shifted lower by 21.6% due to these changes.
VGM Scores
At this time, Liberty Interactive's stock has a subpar Growth Score of 'D', though it is lagging a bit on the momentum front with an 'F'. However, the stock was allocated a grade of 'A' on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for value based on our styles scores.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. It's no surprise that the stock has a Zacks Rank #5 (Strong Sell). We are looking for a below average return from the stock in the next few months.
Image: Bigstock
Why Is Liberty Interactive (QVCA) Up 3.7% Since the Last Earnings Report?
A month has gone by since the last earnings report for Liberty Interactive Corporation . Shares have added about 3.7% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Liberty Interactive Q3 Earnings Beat, Revenues Miss
GAAP net income came in at $148 million or $0.31 per share compared with a net income of $190 million or $0.33 per share in the prior-year quarter. Adjusted earnings per share of $0.31 were ahead of the Zacks Consensus Estimate of $0.29.
Meanwhile, the quarter’s total revenue of $2,303 million reflected a year-over-year increase of 14.7% but lagged the Zacks Consensus Estimate of $2,319.5 million.
Quarterly total operating income came in at $167 million compared with $264 million in the year-ago quarter. In the reported quarter, consolidated adjusted operating income before depreciation and amortization was $406 million compared with $421 million in the year-ago quarter.
In the first nine months 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 third 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 third 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 down 3% year over year to $1,948 million. Revenues from the QVC U.S. segment were $1,338 million, down 6% year over year. Revenues from the QVC International segment were $610 million, up 4% year over year. QVC U.S. OIBDA (operating income before depreciation and amortization) was $308 million, down 8% year over year while QVC International OIBDA was $85 million, down 12% year over year.
zulily Segment
Quarterly revenues at the zulily segment totaled $359 million, up 23.2% year over year. Quarterly adjusted OIBDA was $18 million, up a substantial 121.4%. Meanwhile, operating loss was $52 million in the reported quarter as against an operating income of $5 million in the prior-year quarter.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter. In the past month, the consensus estimate has shifted lower by 21.6% due to these changes.
Liberty Interactive Corporation Price and Consensus
Liberty Interactive Corporation Price and Consensus | Liberty Interactive Corporation Quote
VGM Scores
At this time, Liberty Interactive's stock has a subpar Growth Score of 'D', though it is lagging a bit on the momentum front with an 'F'. However, the stock was allocated a grade of 'A' on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for value based on our styles scores.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. It's no surprise that the stock has a Zacks Rank #5 (Strong Sell). We are looking for a below average return from the stock in the next few months.