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Liberty Interactive (QVCA) Q3 Earnings & Sales Top Estimates

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Liberty Interactive Corp. reported strong results in third-quarter 2017, with the bottom and top line surpassing the Zacks Consensus Estimate.

Net income on a GAAP basis was $119 million, up from $61 million in the prior-year quarter. Earnings per share in the quarter under review were 26 cents, beating the Zacks Consensus Estimate of 15 cents.

Liberty Interactive Corporation Price, Consensus and EPS Surprise

 

Liberty Interactive Corporation Price, Consensus and EPS Surprise | Liberty Interactive Corporation Quote

 

Total revenues were $2,375 million, rising 3% year over year and beating the Zacks Consensus Estimate of $2,337 million.

Total operating income was $218 million compared with $167 million in the year-ago quarter. In the reported quarter, consolidated adjusted operating income before depreciation and amortization (OIBDA) was $416 million compared with $410 million in the year-ago quarter.

In the first nine months of 2017, Liberty Interactive generated $1,020 million in cash from operations compared with $1,035 million in the first nine months of 2016.

At the end of third-quarter 2017, the company had total cash and cash equivalents of $895 million compared with $505 million at the end of September 2016. The company exited the quarter with $7,050 million of outstanding debt compared with $7,255 million at the end of September 2016.

QVC Segment

Quarterly revenues at the QVC division were up 3% year over year to $2,010 million. Revenues from the QVC U.S. segment totaled $1,374 million, up 3% year over year. Revenues from the QVC International segment were $636 million, up 4% year over year. QVC U.S. adjusted OIBDA was $313 million, up 2% year over year, while QVC International adjusted OIBDA was $99 million, up 16% year over year. 

zulily Segment

Quarterly revenues at the zulily segment totaled $367 million, up 2% year over year. Quarterly adjusted OIBDA was $12 million, down 33%. Quarterly adjusted OIBDA margin declined to 3.3% from 5.0% in the year-ago quarter. Meanwhile, operating loss was $44 million in the reported quarter compared with an operating loss of $52 million in the prior-year quarter.

Recent Development

We believe that the $2.1-billion stock purchase deal to acquire the home-shopping platform HSN Inc. should provide increased scale and competitive position for the QVC unit. It will also generate synergies through cost reduction and revenue growth opportunities. The newly-combined company will have $14 billion in revenues and 23 million customers around the world. The merged entity will be the third-largest online site, behind Amazon.com Inc. (AMZN - Free Report) and Wal-Mart Stores Inc.’s (WMT - Free Report) e-commerce business.

Zacks Rank

Liberty Interactive currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

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