LBTYA: Liberty Global reports bigger than expected loss
Liberty Global, Inc., (LBTYA), reported a bigger than expected loss for the first quarter, the Denver Post reports. At the moment, the stock is down 3.4% on the news to $35.11. Yahoo’s summary page is here. Reuters’ s here.
Liberty Global is the 29th largest Colorado-based company.
Liberty Global’s news release is here. Since the news release is a horrible example of how to use jargon and a bunch of operating statistics to cover up losses, it’s probably best to quote key graphs from the Post:
Englewood ‚Äî Liberty Global Inc. said its first-quarter loss widened on higher interest payments and losses on derivatives.
The Englewood-based company’s loss reached $155.6 million, or 45 cents per share, compared with a loss of $136.1 million, or 35 cents per share, in the year-ago quarter.
Analysts polled by Thomson Financial expected a loss of 7 cents per share.
Liberty says revenue rose to $2.61 billion from $2.11 billion when it released results after the market closed Wednesday.
Analysts forecast $2.56 billion in revenue.
The gains come as Liberty expanded its customer base 7 percent the past year with faster growth in broadban
Reuters reports that Liberty Global’s valuation ratios are lower than those of its industry and sector peers. It’s stock is trading for 1.33 times sales, compared with 1.89 for its industry, 2.55 for its sector and 2.61 times for the S&P 500. It is trading for 5.19 times cash flow compared with 8.54 for its industry and 13.93 times for the S&P 500.
These lower valuations not only reflect the company’s poorer performance but also the market’s less hopeful outlook for the company compared with its industry and sector peers. LBTYA’s sales are growing faster than those of it’s peers, but its losses have been growing while its peers’ profits have been growing. Profoundly speaking, investors like profits more than losses.
Full disclosure: I have no interest in LBTYA.
For educational purposes only. Investigate before you speculate.
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