Liquidity Services Earnings Preview

Liquidity Services (Nasdaq: LQDT  ) will try to beat its earnings estimates for the fifth consecutive quarter. The company will unveil its latest earnings on Tuesday. Liquidity Services is an online auction marketplace for wholesale surplus and salvage assets.

What analysts say:

• Buy, sell, or hold?: Analysts are very bullish on this stock, unanimously backing it as a buy. Analysts still rate the stock a moderate buy, but they are a bit more wary about it compared to three months ago.
• Revenue forecasts: On average, analysts predict $79 million in revenue this quarter. That would represent a rise of 8.3% from the year-ago quarter.
• Wall Street earnings expectations: The average analyst estimate is earnings of $0.13 per share. Estimates range from $0.10 to $0.15.

What our community says:
CAPS All-Stars are solidly behind the stock with 98.2% giving it an outperform rating. The community at large backs the All-Stars with 93.8% assigning it a rating of outperform. Despite the majority sentiment in favor of Liquidity Services, the stock has a middling CAPS rating of three out of five stars.

Management:

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter	Q3	Q2	Q1	Q4
Gross Margin	59.8%	55.8%	58.0%	61.0%
Operating Margin	(6.5%)	11.0%	3.5%	6.9%
Net Margin	(1.2%)	5.5%	1.8%	3.4%

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Earnings estimates provided by Zacks