logo
Share SHARE
FONT-SIZE Plus   Neg

Liquidity Services Profit Rises; Stock Down On Weak Outlook - Update

Liquidity Services Inc. (LQDT) Thursday reported an increase in profit for the fourth quarter from a year ago, when results were hurt by loss from discontinued operations. Revenues for the quarter surged sharply and topped Street estimates, but were offset by increased expenses.

Moving forward, the company detailed its outlook for fiscal year 2013 and warned of tough business conditions. Liquidity Services shares plummeted 17 percent in morning trade on the Nasdaq.

Washington DC-based Liquidity Services operates various online auction marketplaces for surplus and salvage assets.

The company reported fourth-quarter net income of $5.6 million or $0.17 per share, up from $3 million or $0.10 per share last year.

Results for the prior-year quarter included a loss from discontinued operations of $3.6 million or $0.12 per share. Excluding items, adjusted earnings for the quarter were $13 million or $0.40 per share, compared with $4 million or $0.14 per share a year ago.

On average, 9 analysts polled by Thomson Reuters expected earnings of $0.37 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter increased 52 percent to $122 million from $79 million last year. Analysts expected revenues of $114.59 million for the quarter.

"We continued to benefit from large commercial and government clients placing their trust in us to handle more of their excess inventory and high value capital asset sales, which drove strong growth this quarter," said CEO Bill Angrick.

Expenses for the quarter increased to $114 million, compared with $70 million a year ago.

For the first quarter, Liquidity Services expect adjusted earnings of $0.36 to $0.40 per share. Analysts currently estimate $0.46 per share.

For the fiscal year 2013, the company anticipate adjusted earnings of $2.05 to $2.23 per share, while analysts currently forecast $2.20 per share.

The company's stock is trading at $36.14, down $7.59 or 17.36%, on a volume of 1.8 million shares.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Computer and printer maker Hewlett-Packard Co. said Thursday after the markets closed that its second quarter profit fell 21% from last year, hurt by lower revenue and costs related to the planned separation of the company. However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations, but its quarterly revenue fell short of analysts' forecast. Accounting software maker Intuit reported a plunge in third-quarter profit, hurt by impairment charges, even as results topped Wall Street estimates, driven by growth in small business segment amid a strong tax season. Struggling teen-apparel retailer Aeropostale Inc. (ARO), Thursday said its first-quarter loss narrowed from a year ago, driven largely by stronger margins even as revenues continued to plunge dropped. Nevertheless, the company lost almost one-fifth of its market value in after-hours trade, with the...
comments powered by Disqus
Follow RTT