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Liberty Interactive (QVCA) Tops Q3 Earnings and Revenues

Liberty Interactive Corp.QVCA reported strong financial results in the third quarter of 2015 with both the top and the bottom line surpassing the Zacks Consensus Estimate.

Quarterly net income came in at $154 million compared with $83 million in the prior-year quarter. Third quarter earnings per share of 33 cents were significantly ahead of the Zacks Consensus Estimate of 25 cents.

Liberty Interactive Corporation (QVCA) - Earnings Surprise | FindTheCompany

Meanwhile, quarterly total revenue of $2,007 million reflected a year-over-year decline of 13.9% but outpaced the Zacks Consensus Estimate of $1,989 million.

Quarterly total operating income came in at $264 million compared with $247 million in the year-ago quarter. In the reported quarter, consolidated adjusted operating income before depreciation and amortization stood at $421 million compared with $433 million in the year-ago quarter.

In the first nine months of 2015, Liberty Interactive generated $737 million of cash from operations compared with $815 million in the year-ago period. Free cash flow in the reported period was $605 million against $673 million in the prior-year period.

At the end of the third quarter of 2015, Liberty Interactive had total cash and marketable securities of $527 million compared with $603 million at the end of 2014. The company exited the reported quarter with $5,691 million of outstanding debt compared with $6,215 million at the end of 2014. The debt-to-capitalization ratio at the end of the third quarter stood at 0.58.

QVC, a segment of Liberty Interactive, is a major e-commerce retailer in the U.S. competing with the likes of 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.'s TRIP common stock. Liberty Interactive currently carries a Zacks Rank #3 (Hold).

QVC Segment

Quarterly revenues at the QVC U.S. division were up 4% year over year at $1,420 million. Revenues from Germany declined 13% to $199 million. QVC Japan's contribution totaled $192 million, down 11%. QVC's UK business revenues dropped 3% to $168 million. Italy generated the remaining $28 million, down 18%. Revenues from the Chinese joint venture came in at $45 million, up 36% year over year.

Digital Commerce Segment

Quarterly revenues at the Digital Commerce segment totaled $146 million, up 4% year over year. Quarterly adjusted OIBDA was $17 million, up 21% year over year. Meanwhile, operating loss stood at $7 million compared with an operating income of $6 million in the year-ago quarter.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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