Liberty Interactive Corp. delivered impressive fourth-quarter 2017 results, with the bottom and top line surpassing the Zacks Consensus Estimate. The company’s earnings (on an adjusted basis) of $2.05 per share surpassed the Zacks Consensus Estimate of 48 cents. Results were backed by higher revenues.
Total revenues were $3,337 million, up 7% year over year. The figure also surpassed the Zacks Consensus Estimate of $3,244 million.
Total operating income was $391 million compared with $384 million in the year-ago quarter. In the fourth quarter, consolidated adjusted operating income before depreciation and amortization (OIBDA) was $604 million compared with $610 million in the year-ago quarter.
Cash Flow & Liquidity
In 2017, Liberty Interactive generated $1,492 million in cash from operations compared with $1,443 million in 2016.
As of Dec 31, 2017, the company had total cash and cash equivalents of $903 million compared with $825 million at the end of December 2016. The company exited the period with $7,553 million of outstanding debt compared with $7,166 million at the end of 2016.
Revenues in the QVC division were $2,817 million, up 6% from the year-ago quarter. Revenues from the QVC US segment totaled $2,029 million, up 4% year over year. Revenues from the QVC International segment were $788 million, up 11% year over year. QVC US adjusted OIBDA of $436 million was flat year over year, while the same for QVC International was $147 million, up 12% on a year-over-year basis.
Quarterly revenues in the zulily segment totaled $520 million, up 11% on a year-over-year basis. Quarterly adjusted OIBDA was $38 million, down 5%. Quarterly adjusted OIBDA margin declined to 7.3% from 8.6% in the year-ago quarter. Meanwhile, operating loss was $18 million compared with operating loss of $14 million in the prior-year quarter.
Quarterly revenues in the HSN standalone segment totaled $712 million, down 8% year over year. Quarterly adjusted OIBDA was $79 million, up 5%. Quarterly adjusted OIBDA margin increased to 11.1% from 9.8% in the year-ago quarter. Meanwhile, operating loss was $3 million in the reported quarter against operating income of $64 million in the prior-year quarter.
We remind investors that Liberty Interactive completed the acquisition of the remaining 61.8% of the home-shopping platform — HSN Inc. — on Dec 29, 2017. The merged entity has become the third-largest online site, competing against Amazon.com (AMZN - Free Report) , Cars.com (CARS - Free Report) and Wal-Mart Stores (WMT - Free Report) in the global e-commerce business.
Liberty Interactive carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
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