Liquidity Services Beats on EPS But GAAP Results Lag

Liquidity Services (Nasdaq: LQDT  ) reported earnings on Jan. 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Liquidity Services missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped significantly.

Margins dropped across the board.

Revenue details
Liquidity Services chalked up revenue of $122.2 million. The 10 analysts polled by S&P Capital IQ anticipated a top line of $130.7 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $106.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.41. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.38 per share. GAAP EPS of $0.20 for Q1 were 29% lower than the prior-year quarter's $0.28 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 43.0%, 130 basis points worse than the prior-year quarter. Operating margin was 12.8%, 280 basis points worse than the prior-year quarter. Net margin was 5.5%, 310 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $155.6 million. On the bottom line, the average EPS estimate is $0.58.

Next year's average estimate for revenue is $583.8 million. The average EPS estimate is $2.15.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 431 members out of 454 rating the stock outperform, and 23 members rating it underperform. Among 130 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 127 give Liquidity Services a green thumbs-up, and three 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 $57.36.

Internet software and services are being consumed in radically different ways, on new and increasingly mobile devices. Is Liquidity Services on the right side of the revolution? Check out the changing landscape and meet the company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends 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 (1)

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: 2227741, ~/Articles/ArticleHandler.aspx, 12/18/2014 7:44:54 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