Liberty Media Misses on Q1 Earnings, Revs - Analyst Blog

Liberty Media Corp. LMCA reported lackluster financial results for the first quarter of 2014. The adjusted earnings per share of 76 cents were significantly lower than the Zacks Consensus Estimate of $1.04. Quarterly GAAP net income was $72 million compared with $8,104 million in the year-ago quarter.

Quarterly total revenue came in at $1,011 million as against $789 million in the prior-year quarter but fell below the Zacks Consensus Estimate of $1,060 million. 

In the first quarter of 2014, Liberty Media's adjusted operating income before depreciation and amortization came in at $294 million compared with $262 million in the year-ago quarter. Quarterly operating income was $155 million as against a loss of $151 million in the prior-year quarter. Adjusted EBITDA stood at $334.8 million against $261.9 million in the prior-year quarter.

In the first quarter of 2014, Liberty Media generated $294 million of cash from operations compared with $339 million in the prior-year quarter. Free cash flow in the reported quarter was $228 million against $313 million in the year-ago quarter.

At the end of the first quarter of 2014, Liberty Media had $377 million of cash and cash equivalents against $1,088 million at the end of 2013. The total debt, at the end of the reported quarter was $4,668 million compared with $5,555 million at the end of 2013. At first quarter end, the debt-to-capitalization ratio stood at 0.14 compared with 0.25 at the end of 2013.

Liberty Media controls a 27.3% stake in Charter Communications Inc. CHTR and was aggressively pursuing the idea of Charter Communications taking over Time Warner Cable Inc. TWC. However, Charter Communications lost to Comcast Corp. CMCSA in the bid.

Meanwhile, last month, Comcast reached an agreement with Charter Communications to divest 3.9 million subscribers as a strategic decision to ease the regulatory concern over its proposed merger with Time Warner Cable. Liberty Media currently has a Zacks Rank #3 (Hold).

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
 
CHARTER COMM-A CHTR: Free Stock Analysis Report
 
COMCAST CORP A CMCSA: Free Stock Analysis Report
 
LIBERTY MEDIA-A LMCA: Free Stock Analysis Report
 
TIME WARNER CAB TWC: Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research