The 10-second takeaway
For the quarter ended March 31 (Q2), Liquidity Services beat expectations on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue grew significantly and GAAP earnings per share increased significantly.
Margins increased across the board.
Liquidity Services reported revenue of $125.7 million. The eight analysts polled by S&P Capital IQ expected sales of $122.6 million on the same basis. GAAP reported sales were 37% higher than the prior-year quarter's $92.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.49. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.37 per share. GAAP EPS of $0.57 for Q2 were 217% higher than the prior-year quarter's $0.18 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 43.7%, 350 basis points better than the prior-year quarter. Operating margin was 19.8%, 880 basis points better than the prior-year quarter. Net margin was 14.9%, 940 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $126.6 million. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $470.0 million. The average EPS estimate is $1.50.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 333 members out of 360 rating the stock outperform, and 27 members rating it underperform. Among 119 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 114 give Liquidity Services a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Liquidity Services is buy, with an average price target of $43.88.
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