Liquidity Services Shares Plunged, Then Recovered: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of surplus-goods marketplace operator Liquidity Services (Nasdaq: LQDT  ) are on a wild ride today, plunging by as much as 16% in the morning only to recover into positive territory currently, after the company reported third-quarter earnings this morning.

So what: The initial sell-off may be attributed to the bottom-line miss, as earnings per share came in at $0.14, which was a nickel per share short of the estimate of $0.19. Meanwhile, the top line showed a better-than-expected $80.7 million.

Now what: Liquidity Services CEO Bill Angrick said that the company "continued to grow our market share and build on our leadership position in the reverse supply chain market during a seasonally low quarter for the Company," and also cited strength with large commercial and government clients. For its fiscal 2012, the company sees earnings per share in the range of $1.26 to $1.32, compared to the consensus of $1.13. While the gut reaction to the profit miss may have triggered some selling, the long-term prospects look just fine.

Interested in more info on Liquidity Services? Add it to your watchlist by clicking here.

Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. Motley Fool newsletter services have recommended buying shares of Liquidity Services. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1737026, ~/Articles/ArticleHandler.aspx, 8/27/2014 10:58:19 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement