The 10-second takeaway
For the quarter ended Dec. 31 (Q1), 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 expanded significantly.
Margins improved across the board.
Liquidity Services reported revenue of $106.0 million. The eight analysts polled by S&P Capital IQ wanted to see revenue of $102.6 million. Sales were 35% higher than the prior-year quarter's $78.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.32. The seven earnings estimates compiled by S&P Capital IQ forecast $0.27 per share on the same basis. GAAP EPS of $0.28 for Q1 were 460% higher than the prior-year quarter's $0.05 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 44.3%, 320 basis points better than the prior-year quarter. Operating margin was 15.6%, 520 basis points better than the prior-year quarter. Net margin was 8.6%, 680 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $119.5 million. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $442.0 million. The average EPS estimate is $1.29.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 299 members out of 321 rating the stock outperform, and 22 members rating it underperform. Among 118 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 115 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 outperform, with an average price target of $41.86.
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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. Motley Fool newsletter services have recommended buying shares of 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.