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
HSBC is reportedly laying off about 100 of its senior investment bankers worldwide, as the banking giant strives to curb operating costs. According to reports, the London-headquartered bank will eliminate managing director and director level employees at the Global Banking and Markets division, as... Samsung Electronics Co., Ltd. (SMSN.L, SSNNF.OB, SSNLF.OB) will reportedly blame faulty batteries for last year's Galaxy Note 7 fiasco. According to a Wall Street Journal report, Samsung's investigation of Galaxy Note 7 smartphones found that some batteries were irregularly sized while others had... Federal investigators have closed their probe of a fatal crash that involved a Tesla Motors Inc. car eight months ago. The regulators said they have found no safety defects in the vehicle's automated driving system and that Tesla's Autopilot-enabled vehicles did not need to be recalled.
comments powered by Disqus
Follow RTT