Terrier Investing's Best Idea: Liquidity Services
Terrier Investing • 59 Comments
Terrier Investing • 59 Comments
Thu, May 5, 7:00 AM
Wed, May 4, 5:30 PM
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Thu, Mar. 3, 6:24 PM
- Liquidity Services (NASDAQ:LQDT) placed a winning bid (equal to 64.5% of gross resale proceeds being returned to the government) for a DoD scrap auction contract. The new contract has a 3-year base term and two one-year options.
- Liquidity's shares were hit hard in 2014 by the loss of the DoD's rolling stock surplus contract. A scrap contract extension was landed in 2015. In last month's FQ1 report, the company noted its FY16 outlook remains cautious "due to the changing mix and volume of supply in our DoD and commercial business, in part due to lower commodity prices and macro weakness in the energy sector."
Thu, Feb. 4, 12:55 PM
- In addition to missing FQ1 estimates, Liquidity Services (NASDAQ:LQDT) is guiding for FQ2 EPS of -$0.11 to $0.00, below a $0.03 consensus. GMV is expected to total $140M-$160M, below FQ1's $151.4M (-38.3% Y/Y) and down from $189.4M a year ago.
- Liquidity: "[O]ur DoD business has seen significant changes in the volume and mix of property we handle and a decline in scrap metals pricing which has reduced sales values and increased costs ... .Our FY-16 outlook remains cautious due to the changing mix and volume of supply in our DoD and commercial business, in part due to lower commodity prices and macro weakness in the energy sector. While we anticipate a benefit to earnings in FY-16 compared to FY-15 from the sale of the Jacobs Trading business, client engagements and the mix of property received under select retail client programs are unpredictable, resulting in lower supply and lower per unit prices in certain categories."
- FQ1 details: Registered buyers rose 9% Y/Y to 2.88M. However, auction participants and completed transactions respectively fell 11% and 9% to 561K and 133K. Not counting $96M in year-ago M&A/goodwill charges, GAAP costs/expenses fell 36% Y/Y to $73.3M.
Liquidity ended FQ1 with $85.5M and no debt. The company's market cap is currently $162M.
- Liquidity's FQ1 results, earnings release
Thu, Feb. 4, 7:12 AM
Wed, Feb. 3, 5:30 PM
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Nov. 19, 2015, 3:07 PM
- In addition to missing FQ4 revenue estimates (while beating on EPS), Liquidity Services (NASDAQ:LQDT) is guiding for FQ1 EPS of -$0.09 to $0.00, below a $0.19 consensus. GMV is expected to drop to $140M-$160M from FQ4's $170.7M and the year-ago period's $245.3M.
- Liquidity: "In the near term it remains difficult to forecast the sales and margins of our business, as our DoD business has seen significant changes in the volume and mix of property we handle which has reduced sales values and increased costs ... Our FY-16 outlook remains cautious due to the changing mix and volume of supply in our DoD and commercial business, in part due to lower commodity prices and macro weakness in the energy and industrial sectors ... We also plan to further allocate management time and resources to accomplish our LiquidityOne transformation program, which may result in reduced productivity and growth that is difficult to forecast."
- The company adds negotiations are ongoing for its new DoD surplus contract, though operations for the contract commenced last month. FQ4 GMV fell 23.8% Y/Y due to the loss of a DoD rolling stock contract and the end of Liquidity's Wal-Mart deal.
- Registered buyers still rose 9% Y/Y to 2.5M. Completed transactions rose 4% in FY15 to 567K, while auction participants fell 2% to 2.48M. Lifting EPS: sales/marketing, tech/operations, and G&A spend each fell Y/Y.
- Liquidity ended FQ4 with $95.5M in cash, and no debt. Its market cap stands at $204M.
- FQ4 results, PR
Nov. 19, 2015, 12:44 PM
Nov. 19, 2015, 7:03 AM
- Liquidity Services (NASDAQ:LQDT): FQ4 EPS of $0.07 beats by $0.07.
- Revenue of $79.29M (-33.0% Y/Y) misses by $1.83M.
Nov. 18, 2015, 5:30 PM
Sep. 28, 2015, 3:00 PM
- Plenty of high-beta tech names are getting clobbered as the Nasdaq posts a 3% drop amid a broad market selloff.
- Firms down over 5% include memory giant Micron (MU -5.6%), salvage auction site Liquidity Services (LQDT -10.5%), industrial measurement toolmaker Perceptron (PRCP -12.1%), cloud healthcare software provider Castlight (CSLT -5.4%), CDN owner Limelight (LLNW -8.6%), mortgage origination software firm Ellie Mae (ELLI -6.1%), ultracapacitor maker Maxwell (MXWL -8.5%), Korean analog/mixed-signal chipmaker MagnaChip (MX -9.3%), online loan marketplace LendingTree (TREE -7.9%), and online ad retargeting firm Criteo (CRTO -5.9%).
- Micron's decline comes ahead of its Thursday FQ4 report. Nomura predicted today FQ4 results will miss consensus, and that FQ1 will also be weak. "While an estimate cut is well understood, we believe Micron’s stock will continue to track DRAM/NAND pricing, which is trending lower into the peak of the build season.” Cowen, on the other hand, argued FQ4 will be the bottom, and stated checks point to Samsung "pulling back meaningfully on capex."
- See also: Solar stocks, GoPro, Mindbody, Qorvo
Aug. 6, 2015, 6:57 AM
- Liquidity Services (NASDAQ:LQDT): FQ3 EPS of $0.14 beats by $0.04.
- Revenue of $89.7M (-29.3% Y/Y) misses by $7.11M.
Jul. 23, 2015, 5:31 PM
- Jorge Celaya, once the CFO of consulting/software firm FTI Consulting and BPO firm Sitel, has been named Liquidity Services' (NASDAQ:LQDT) new CFO, effective Aug. 10.
- Celaya replaces Jim Rallo, who has been CFO since 2005. Rallo will remain head of Liquidity's Retail Supply Chain Group, a role he took on last year.
- The announcement comes ahead of the salvage auction site's Aug. 6 FQ3 report.
Jun. 10, 2015, 1:45 PM
- The DoD has granted Liquidity Services (NASDAQ:LQDT) a 9-month base term extension for its scrap property auction contract, as well as three 3-month option periods. The extension went into effect yesterday.
- Liquidity's contract has been amended to give the DoD a 65% profit share, and the right to "terminate portions of the contract by location with a 90-day notification required no sooner than February 1, 2016." It can also "terminate portions of the contract by certain commodity categories with a 60-day notification required no sooner than October 1, 2015."
- Liquidity has jumped above $10 on the news. The company's GMV has been hit hard in recent quarters by the 2014 loss of the DoD's rolling stock surplus auction contract.
May 7, 2015, 3:36 PM
- Tech companies rallying after posting calendar Q1 reports include online textbook rental/learning services provider Chegg (CHGG +14.6%), salvage auction site Liquidity Services (LQDT +10.3%), optical component maker Emcore (EMKR +6.7%), and health site owner WebMD (WBMD +6.7%).
- Companies declining following earnings include cloud fleet management software vendor Fleetmatics (FLTX -6.8%), seismic hardware provider Ion Geophysical (IO -11.8%), and online stock photo marketplace Shutterstock (SSTK -4.7%).
- Chegg beat Q1 estimates on the back of an 89% Y/Y increase in digital revenue (now 39% of total revenue. Q2 revenue guidance of $61M-$65M and full-year guidance of $300M-$315M is respectively favorable to consensus estimates of $62.2M and $304.3M at the midpoints.
- Beaten-down Liquidity beat FQ2 estimates while reporting a 16.6% Y/Y drop in GMV to $189.4M. FQ3 guidance is for GMV of $175M-$200M and EPS of $0.05-$0.10 (below an $0.11 consensus).
- Emcore beat FQ2 estimates and is guiding for FQ3 broadband fiber division revenue of $19M-$21M, above an $18.5M consensus.
- WebMD beat Q1 estimates on the back of 21% Y/Y increases in monthly unique users (210M) and page views (4.25B). Q2 revenue guidance of $145M-$148M is below a $151.9M consensus, but full-year revenue guidance of $615M-$635M has been reiterated.
- Fleetmatics beat Q1 estimates, but also guided for Q2 revenue of $67.9M-$68.7M and EPS of $0.24-$0.26, below a consensus of $69.5M and $0.30. Full-year guidance is for revenue of $281M-$283M and EPS of $1.26-$1.30 vs. a consensus of $288.8M and $1.29.
- Ion, hit hard by declining oil exploration work, missed Q1 estimates while reporting 79%, 49%, and 12% Y/Y drops in Solutions, Systems, and Software revenue. The company expects "an increase in exploration spending over the back half of the year, albeit at lower than historical levels."
- Shutterstock beat Q1 estimates, but also forecast Q2 revenue of $104M-$106M (below a $106.1M consensus). 2015 revenue guidance of $436M-$444M is in-line with a $439.5M consensus.
- Previously covered: Alibaba, Qorvo, SunEdison, MeetMe, Priceline, Teradata, Activision, Gogo, Atmel, Varonis, Zynga
May 7, 2015, 6:56 AM
- Liquidity Services (NASDAQ:LQDT): FQ2 EPS of $0.08 beats by $0.01.
- Revenue of $102.94M (-19.8% Y/Y) beats by $6.11M.
Liquidity Services, Inc. engages in the provision of online marketplaces and integrated services for surplus assets to corporations, public sector agencies, and buying customers. Its services include surplus asset management, valuation and planning, asset disposition, and government solutions.... More
Industry: Internet Software & Services
Country: United States
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