Liquidity Services Earnings: Here’s Why Investors Like These Results

Liquidity Services, Inc. (NASDAQ:LQDT) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 1.72%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Liquidity Services, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 7.69% to $0.48 in the quarter versus EPS of $0.52 in the year-earlier quarter.

Revenue: Rose 3.66% to $130.32 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Liquidity Services, Inc. reported adjusted EPS income of $0.48 per share. By that measure, the company met the mean analyst estimate of $0.48. It missed the average revenue estimate of $140.65 million.

Quoting Management: “Liquidity Services generated solid results during Q2-FY13 as we expanded adjusted EBITDA margins in our core business and continued to deliver a high level of service to large commercial and government clients in managing their excess inventory and high value capital asset sales,” said Bill Angrick, Chairman and CEO of Liquidity Services. “We remain focused on executing our long term growth strategy to achieve $2 billion in GMV by fiscal year 2016. During the quarter, we continued to advance our multi-year investment efforts in upgrading our e-commerce platform, investing in our sales and marketing organization and integrating our recent acquisitions of NESA and GoIndustry. We made significant progress this quarter integrating GoIndustry, including the award of several new client engagements, and anticipate that we will exit this fiscal year with GoIndustry operating profitably, while enhancing our strategic plan of serving global capital asset clients. We believe these important investments uniquely address the needs of the Fortune 1000 and public sector agencies and position us well to drive shareholder value over the next five years.”

Key Stats (on next page)…

Revenue increased 6.64% from $122.21 million in the previous quarter. EPS increased 17.07% from $0.41 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.60 to a profit $0.56. For the current year, the average estimate has moved down from a profit of $2.06 to a profit of $1.97 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

More Articles About:   , , , ,  

More from The Cheat Sheet