Ritchie Bros. Auctioneers Earnings: Here’s Why Investors Like These Results

Ritchie Bros. Auctioneers Incorporated (NYSE:RBA) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 5.17%.

Ritchie Bros. Auctioneers Incorporated Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 6.67% to $0.28 in the quarter versus EPS of $0.30 in the year-earlier quarter.

Revenue: Rose 0.87% to $128.32 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Ritchie Bros. Auctioneers Incorporated reported adjusted EPS income of $0.28 per share. By that measure, the company beat the mean analyst estimate of $0.27. It beat the average revenue estimate of $125.2 million.

Quoting Management: “While we were pleased with our strong revenue rate performance in the quarter, our Gross Auction Proceeds are down year over year as our business continues to contend with a reduced supply of used equipment within the three to five year age bracket – a traditionally strong segment of our auction business. We expect this supply shortage will dissipate in the future as larger inventories of newer machinery become available for resale. Although this macro challenge has created headwinds for our business, we are focusing on what we can control and executing strategies to drive our growth.”

Key Stats (on next page)…

Revenue increased 25.73% from $102.06 million in the previous quarter. EPS increased 115.38% from $0.13 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 $0.14 to a profit $0.13. For the current year, the average estimate has moved down from a profit of $0.88 to a profit of $0.79 over the last ninety days.

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