In This Article:
Surplus asset marketplace operator Liquidity Services (NASDAQ:LQDT) will be reporting earnings tomorrow morning. Here’s what you need to know.
Liquidity Services beat analysts’ revenue expectations by 16.1% last quarter, reporting revenues of $122.3 million, up 71.5% year on year. It was an incredible quarter for the company, with a solid beat of analysts’ EPS estimates.
Is Liquidity Services a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Liquidity Services’s revenue to grow 36.9% year on year to $125.2 million, improving from the 12.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.30 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Liquidity Services has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Liquidity Services’s peers in the business services & supplies segment, some have already reported their Q1 results, giving us a hint as to what we can expect. CECO Environmental delivered year-on-year revenue growth of 39.9%, beating analysts’ expectations by 17%, and Steelcase reported revenues up 1.7%, in line with consensus estimates. CECO Environmental traded up 23.9% following the results while Steelcase was also up 6.5%.
Read our full analysis of CECO Environmental’s results here and Steelcase’s results here.
There has been positive sentiment among investors in the business services & supplies segment, with share prices up 14.2% on average over the last month. Liquidity Services is up 8.2% during the same time and is heading into earnings with an average analyst price target of $41 (compared to the current share price of $30.74).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.