Liberty Interactive Corp. (QVCA) reported better-than-expected financial results for the third quarter of 2014. Quarterly net income stood at $120 million or 25 cents per share compared with $113 million or 22 cents per share in the year-ago quarter. Third-quarter earnings per share of 25 cents easily outpaced the Zacks Consensus Estimate of 19 cents.
Quarterly total revenue of $2,330 million reflected a year-over-year improvement of 4.7% and slightly above the Zacks Consensus Estimate of $2,328 million.
Quarterly total operating income came in at $247 million compared with $202 million in the year-ago quarter. In the reported quarter, consolidated adjusted operating income before depreciation and amortization stood at $431 million against $397 million in the year-ago quarter.
From Aug 1, 2014 through Oct 31, 2014, Liberty Interactive repurchased approximately 5.7 million Series A shares for a total consideration of $165 million. During the first nine months of 2014, Liberty Interactive generated $1,108 million of cash from operations compared with $535 million in the year-ago period. Free cash flow in the reported period was $966 million against $359 million in the prior-year period.
At the end of the third quarter of 2014, Liberty Interactive had total cash and marketable securities of $3,434 million compared with $602 million at the end of 2013. Liberty Interactive exited the reported quarter with $7,495 million of outstanding debt compared with $5,083 million at the end of 2013. The debt-to-capitalization ratio at third-quarter end was 0.54 compared with 0.44 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). Liberty Interactive also holds approximately 38% of HSN Inc. (HSNI) and about 22% of the equity and 57% of the total votes of all classes of TripAdvisor Inc. (TRIP) common stock. Liberty Interactive currently has a Zacks Rank #3 (Hold).
QVC Segment
Quarterly total revenue at the QVC segment was $2,020 million, up 4% year over year. Adjusted OIBDA was $439 million, up 8% year over year. Operating income stood at $276 million, up 7% year over year.
Quarterly revenues of QVC U.S. inched up 5% year over year to $1,368 million. Gross margin was 37.2% against 37.1% in the prior-year quarter. Adjusted OIBDA stood at $329 million, up 8% year over year. Operating income was $203 million, up 6% year over year.
Quarterly revenues of QVC International rose 1.2% year over year to $652 million. Gross margin was 37.8% compared with 37.4% in the prior-year quarter. Adjusted OIBDA was $110 million, up 5.8% year over year. Operating income was $73 million, up 7.4% from the year-ago quarter.
Digital Commerce Segment
Quarterly revenues at the Digital Commerce segment totaled $310 million, up 12% year over year. Quarterly adjusted OIBDA was a negative $2 million, up a substantial 60% year over year. Operating loss was $14 million as against an operating loss of $43 million in the year-ago quarter.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment