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.
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 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.
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.
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.
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.
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