Shares of Liquidity Services (NASDAQ:LQDT), a provider of online auctions for clients and consumers to buy and sell surplus and salvage inventory assets, are spiking 20% higher as of 10:50 AM EST, after the company announced first-quarter fiscal 2018 results.
Liquidity Services reported first-quarter GMV, a measure of the total sales value of all merchandise sold through marketplaces, of $155.4 million which was slightly below the prior year's $159.7 million. Revenue generated from those sales also declined slightly from the prior year's $70.8 million down to $61.1 million. But a stronger bottom line, especially with the top line being weaker, propelled the stock price higher Thursday. Adjusted earnings checked in at $0.14 per share which was better than the prior year's $0.22 per share loss.
"Though not satisfied, we are encouraged with our Q1-FY18 results as we focus on our growth initiatives to increase market share in our target verticals by expanding relationships with our sellers, buyers, and partners; expand our flexible service offerings for sellers; enhance our buyer experience; and drive operational efficiencies across every part of our business." said Bill Angrick, chairman and CEO of Liquidity Services, in a press release.
It's been a brutal five years for Liquidity Services which has seen an 82% decline in its stock price, so it doesn't take much improvement to propel the stock higher from these lows. It is encouraging to see operational efficiencies drive a stronger bottom line but the company has to generate more auction value and revenue before investors will consider jumping on board for a potential rebound.