The 10-second takeaway
For the quarter ended Sep. 30 (Q4), Liquidity Services beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share grew significantly.
Gross margins contracted, operating margins contracted, net margins grew.
Liquidity Services logged revenue of $122.3 million. The 10 analysts polled by S&P Capital IQ wanted to see sales of $114.6 million on the same basis. GAAP reported sales were 54% higher than the prior-year quarter's $79.2 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 $0.40. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.37 per share. GAAP EPS of $0.17 for Q4 were 70% higher than the prior-year quarter's $0.10 per share. (The prior-year quarter included -$0.12 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 42.2%, 900 basis points worse than the prior-year quarter. Operating margin was 13.1%, 130 basis points worse than the prior-year quarter. Net margin was 4.5%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $132.1 million. On the bottom line, the average EPS estimate is $0.39.
Next year's average estimate for revenue is $591.4 million. The average EPS estimate is $2.17.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 370 members out of 394 rating the stock outperform, and 24 members rating it underperform. Among 111 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 107 give Liquidity Services a green thumbs-up, and four 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 $65.55.
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