Liberty Interactive Corp Third Quarter Earnings Sneak Peek

Liberty Interactive Corp (NASDAQ:LINTA) will unveil its latest earnings on Tuesday, November 6, 2012. Liberty Media is engaged in the video and on-line commerce, media, communications, and entertainment industries.

Liberty Interactive Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 18 cents per share, a rise of 12.5% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 19 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 18 cents during the last month. For the year, analysts are projecting net income of $1.10 per share, a rise of 8.9% from last year.

Past Earnings Performance: The company topped forecasts last quarter after being in line with estimates the quarter prior. In the second quarter, it reported profit of 42 cents per share versus a mean estimate of 23 cents. Two quarters ago, it reported net income of 16 cents per share.

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A Look Back: In the second quarter, profit rose 28.6% to $234 million (42 cents a share) from $182 million (30 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 5.3% to $2.37 billion from $2.25 billion.

Stock Price Performance: Between September 5, 2012 and October 31, 2012, the stock price had risen $1.34 (7.2%), from $18.66 to $20. The stock price saw one of its best stretches over the last year between October 9, 2012 and October 17, 2012, when shares rose for seven straight days, increasing 8.2% (+$1.54) over that span. It saw one of its worst periods between March 16, 2012 and March 23, 2012 when shares fell for six straight days, dropping 2.3% (-45 cents) over that span.

Wall St. Revenue Expectations: On average, analysts predict $2.2 billion in revenue this quarter, a rise of 3.3% from the year-ago quarter. Analysts are forecasting total revenue of $10.07 billion for the year, a rise of 4.7% from last year’s revenue of $9.62 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 8.4% in the third quarter of the last fiscal year, 6.7% in the fourth quarter of the last fiscal year and 7.2% in the first quarter before increasing again in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.68 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations. The company regressed in this liquidity measure from 0.79 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 10.6% to $3.86 billion while assets decreased 4.6% to $2.64 billion.

Analyst Ratings: With three analysts rating the stock as a buy, none rating it as a sell and three rating it as a hold, there are indications of a bullish outlook.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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