Can Liquidity Services Beat These Numbers?

Liquidity Services (NAS: LQDT) is expected to report Q1 earnings on Jan. 31. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Liquidity Services's revenues will grow 24.2% and EPS will increase 15.2%.

The average estimate for revenue is $131.7 million. On the bottom line, the average EPS estimate is $0.38.


Revenue details
Last quarter, Liquidity Services booked revenue of $122.3 million. GAAP reported sales were 54% higher than the prior-year quarter's $79.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.40. GAAP EPS of $0.17 for Q4 were 70% higher than the prior-year quarter's $0.10 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 42.2%, 900 basis points worse than the prior-year quarter. Operating margin was 13.1%, 130 basis points worse than the prior-year quarter. Net margin was 4.5%, 60 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $584.9 million. The average EPS estimate is $2.15.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 419 members out of 442 rating the stock outperform, and 23 members rating it underperform. Among 137 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 134 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 $65.55.

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The article Can Liquidity Services Beat These Numbers? originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Liquidity Services. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Frank Sze-Wei Peng

Will beat earnings as usual tomorrow.

November 28 2012 at 8:01 PM Report abuse rate up rate down Reply