The 10-second takeaway
For the quarter ended March 31 (Q2), Liquidity Services beat expectations on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue grew significantly and GAAP earnings per share increased significantly.
Margins increased across the board.
Liquidity Services reported revenue of $125.7 million. The eight analysts polled by S&P Capital IQ expected sales of $122.6 million on the same basis. GAAP reported sales were 37% higher than the prior-year quarter's $92.1 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 $0.49. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.37 per share. GAAP EPS of $0.57 for Q2 were 217% higher than the prior-year quarter's $0.18 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 43.7%, 350 basis points better than the prior-year quarter. Operating margin was 19.8%, 880 basis points better than the prior-year quarter. Net margin was 14.9%, 940 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $126.6 million. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $470.0 million. The average EPS estimate is $1.50.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 333 members out of 360 rating the stock outperform, and 27 members rating it underperform. Among 119 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 114 give Liquidity Services a green thumbs-up, and five 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 $43.88.
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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. He is the 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 don't 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.