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, December 6. Liquidity Services is an online auction marketplace for wholesale surplus and salvage assets. It enables buyers and sellers to transact in an efficient, automated online auction environment offering over 500 product categories.

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 13 cents per share. Estimates range from 10 cents to 15 cents.

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%

61%

Operating Margin

-6.5%

11%

3.5%

6.9%

Net Margin

-1.2%

5.5%

1.8%

3.4%

For all our Liquidity Services-specific analysis, including earnings and beyond, add Liquidity Services to My Watchlist.

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Earnings estimates provided by Zacks