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What: Shares of online-marketplace operator Liquidity Services (Nasdaq: LQDT ) popped higher today, gaining as much as 12% in intraday trading before settling back down to a more modest 4% gain.
So what: Fiscal third-quarter earnings were the catalyst for the stock's move today as investors were treated to better-than-expected earnings. For the quarter, the online auctioneer posted adjusted earnings per share of $0.56, which was more than double last year's result. Revenue grew strongly as well, notching a 46% increase from 2011. However, the $121 million tally was short of the $124 million that Wall Street was looking for. The profitability gains during the quarter were chalked up to the higher volumes that the company was able to push through its marketplaces.
Now what: The good news doesn't stop with the fiscal third quarter, though, as Liquidity Services also boosted its full-year outlook. For fiscal 2012, which ends in September, the company now expects to report earnings per share of between $1.81 and $1.84. That's well ahead of its previous range of $1.64 to $1.70, as well as analysts' average estimate of $1.68.
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