Liberty Interactive (QVCA) Q3 Earnings Beat, Revenues Miss

Liberty Interactive Corp. (NASDAQ:QVCA) reported mixed financial results in the third quarter of 2016. While the bottom line outpaced the Zacks Consensus Estimate the top line missed the same.

GAAP net income came in at $148 million or 31 cents per share compared with a net income of $190 million or 33 cents per share in the prior-year quarter. Third-quarter earnings per share of 31 cents were ahead of the Zacks Consensus Estimate of 29 cents.

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.

Liberty Interactive competes with large online sellers like Amazon.com Inc. (NASDAQ:AMZN) , HSN Inc. (NASDAQ:HSNI) and Alibaba Group Holding Ltd. (NYSE:BABA) . Liberty Interactive currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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