Liquidity Services
The 10-second takeaway
For the quarter ended June 30 (Q3), Liquidity Services missed slightly on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded.
Margins improved across the board.
Revenue details
Liquidity Services logged revenue of $121.3 million. The nine analysts polled by S&P Capital IQ wanted to see net sales of $123.3 million on the same basis. GAAP reported sales were 41% higher than the prior-year quarter's $86.1 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 $0.56. The nine earnings estimates compiled by S&P Capital IQ forecast $0.46 per share. GAAP EPS were $0.45 for Q3 against -$0.04 per share for the prior-year quarter.
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 46.3%, 220 basis points better than the prior-year quarter. Operating margin was 21.8%, 870 basis points better than the prior-year quarter. Net margin was 12.3%, 1,350 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $116.8 million. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $471.1 million. The average EPS estimate is $1.85.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 346 members rating the stock outperform and 29 members rating it underperform. Among 99 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 93 give Liquidity Services a green thumbs-up, and six 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 $70.13.
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