Liberty Interactive Corp. (NASDAQ:QVCA) 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.
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. (NASDAQ:HSNI) 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. (NASDAQ:AMZN) and Wal-Mart Stores Inc.’s (NYSE:WMT) 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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