- With Liquidity Services (NASDAQ:LQDT +24.4%) having gone into earnings down over 85% from its 2012 highs, and over 70% from a 52-week high of $27.33, its FQ1 beat is easily overshadowing FQ2 EPS guidance of $0.05-$0.10 (below a $0.15 consensus).
- The FQ1 beat was driven by a GMV of $245.3M, +4.6% Y/Y (a big reversal from FQ4's 11% decline) and above guidance of $200M-$225M. GMV is expected to fall in seasonally weak FQ2 to $175M-$200M.
- CEO Bill Angrick: "Given the transition of our legacy businesses with the DoD and Walmart, we are pleased with our Q1 results which were well above our guidance on both the top and bottom line led by a strong quarter in our commercial capital assets group which performed above expectations." 40 new commercial sales clients and client programs were signed during the quarter.
- Liquidity cautions it's "difficult for us to forecast the sales and margins of our business in FY-15 while we are awaiting the final specifications and timing of the work we will be performing under the new DoD surplus contract."
- Cost controls aided the EPS beat: G&A spend fell 23% Y/Y to $9.5M, and sales/marketing and R&D spend rose moderately. Liquidity, which currently sports a $311M market cap, ended FQ1 with $74M in cash, and no debt.
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FQ1 results, PR