The 10-second takeaway
For the quarter ended March 31 (Q2), Liquidity Services missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share shrank. GAAP earnings per share shrank significantly.
Gross margins grew, operating margins contracted, net margins shrank.
Liquidity Services logged revenue of $130.3 million. The nine analysts polled by S&P Capital IQ wanted to see revenue of $140.1 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.48. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.48 per share. Non-GAAP EPS of $0.48 for Q2 were 2.0% lower than the prior-year quarter's $0.49 per share. GAAP EPS of $0.39 for Q2 were 32% lower than the prior-year quarter's $0.57 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 44.5%, 80 basis points better than the prior-year quarter. Operating margin was 16.8%, 300 basis points worse than the prior-year quarter. Net margin was 9.7%, 520 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $131.9 million. On the bottom line, the average EPS estimate is $0.52.
Next year's average estimate for revenue is $528.1 million. The average EPS estimate is $1.97.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 522 members out of 546 rating the stock outperform, and 24 members rating it underperform. Among 150 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 145 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 outperform, with an average price target of $44.35.
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