Ritchie Bros. Auctioneers Incorporated (NYSE:RBA) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.35%.
Ritchie Bros. Auctioneers Incorporated Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 23.53% to $0.13 in the quarter versus EPS of $0.17 in the year-earlier quarter.
Revenue: Rose 0.81% to $102.1 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Ritchie Bros. Auctioneers Incorporated reported adjusted EPS income of $0.13 per share. By that measure, the company missed the mean analyst estimate of $0.15. It beat the average revenue estimate of $100.37 million.
Quoting Management: “We have started the year with a strong auction revenue rate, however this did not totally compensate for the fall in our gross auction proceeds. There are a couple of key points in regards to our efforts to grow our GAP. ” said Peter Blake , Ritchie Bros. CEO. “Our gross auction proceeds growth has been impacted by our territory manager productivity and the OEM production decrease and its impact on the mix of equipment we sell at our auctions. We have hired a record number of territory managers during the past year and are focused on coaching them to sell auction services and getting them as productive as quickly as possible. There was a significant OEM production decrease during the recession, and as a result the average age of items sold at our auctions over the past year is older and this has had a negative impact on the average value of what we are selling, effecting our gross auction proceeds. We see the rise in construction and transportation OEM production since 2010 as encouraging. In the near term, we remain confident we are on track to deliver and execute as planned for 2013.”
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