Terrier Investing's Best Idea: Liquidity Services
Terrier Investing • 59 Comments
Terrier Investing • 59 Comments
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
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
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
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
Feb. 9, 2015, 2:55 PM
- Today's notable tech gainers include 3D printer maker ExOne (XONE +6%), data center switch vendor Arista (ANET +4.2%), solar microinverter maker Enphase (ENPH +6.1%), ID theft-protection services firm LifeLock (LOCK +6.8%), voice processor developer Audience (ADNC +10.3%), contract manufacturer Multi-Finline (MFLX +10.2%), and cloud file-sharing platform/recent IPO Box (BOX +9.1%).
- Notable decliners include flash storage array vendor Violin Memory (VMEM -5.6%), ultracapacitor maker Maxwell (MXWL -6.3%), SMB Web services provider Wix.com (WIX -4.8%), salvage auction site Liquidity Services (LQDT -5.4%), and carrier billing software/cloud services provider Synchronoss (SNCR -5.6%). The Nasdaq is down 0.3%.
- LifeLock reports earnings tomorrow afternoon. Audience is four days removed from beating Q3 estimates and offering in-line guidance. Arista is reversing its Friday's losses, and Box is adding to the Friday gains that came after a positive Jim Cramer mention.
- Synchronoss is adding to the losses seen last week after the company offered cautious 2015 cloud revenue guidance to go with a Q4 beat, and Maxwell to the losses seen due to the soft Q1/2015 guidance provided with a Q4 beat. Liquidity is giving back some of last week's huge post-earnings gains. Wix reports on Wednesday morning.
- Earlier: GoPro, Yelp see more post-earnings pain
- Earlier: Chinese solar stocks rally
Feb. 5, 2015, 1:50 PM
- With Liquidity Services (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.
- FQ1 results, PR
Feb. 5, 2015, 12:45 PM
Feb. 3, 2015, 1:25 PM
- Though the Nasdaq is only up 0.4%, a long list of tech firms are posting outsized gains today.
- It's a good day for online real estate: Merger partners Zillow (Z +5%) and Trulia (TRLA +4.9%) are up sharply, as are Chinese online real estate plays SouFun (SFUN +5.2%), E-House (EJ +6.5%), and Leju (LEJU +3.8%).
- Other major tech gainers include security software firm Imperva (IMPV +4.7%), gaming headset maker Turtle Beach (HEAR +6.6%), salvage auction site Liquidity Holdings (LQDT +7.4%), RF filter tech developer Resonant (RESN +10.7%), telecom equipment/SDN software vendor Cyan (CYNI +10.1%), Chinese CDN owner ChinaCache (CCIH +10.8%), application delivery controller vendor A10 Networks (ATEN +6.1%), Chinese sports lottery site 500.com (WBAI +7.6%), and unified communications hardware/software firm ShoreTel (SHOR +6.7%).
- Earlier: Solar stocks soar as oil tops $51, CSIQ strikes deal
- Earlier: 3D printing stocks routed after Stratasys warns
Dec. 8, 2014, 12:45 PM
Dec. 8, 2014, 10:11 AM
- Declaring Liquidity Services (NASDAQ:LQDT) has failed to comply with deal provisions related to service level requirements and restrictions on the disposing of merchandise, Wal-Mart has terminated an agreement through which Liquidity bought closeouts, customer returns, and excess merchandise for resale. (8-K)
- Liquidity disputes Wal-Mart's allegations, and is "evaluating all of its options" for contesting the deal's termination.
- The company insists Wal-Mart's move won't prevent it from hitting its FQ1 guidance. However, Janney notes Wal-Mart accounted for 11% of FY14 (ended Sep. '14) GMV, and thus expects estimate cuts.
- Separately, Liquidity announces the DoD has granted it a two-month extension for its surplus property sale contract.
Nov. 20, 2014, 12:46 PM
Nov. 20, 2014, 11:27 AM
- Liquidity Services (NASDAQ:LQDT) expects FQ1 EPS of $0.16-$0.22, below a $0.25 consensus. GMV for the seasonally strong quarter is expected to be in a range of $200M-$225M, after totaling $223.9M (-11% Y/Y) in Q3.
- CEO Bill Angrick states FQ4 EPS was affected by "less attractive property mix within our DoD and selected retail programs,." Moreover, his company expects FY15 results to be hurt by "continued uncertainty regarding the mix and volume of property, final scope and timing of our new DoD non-rolling stock surplus contract, and our continued heavy investment in IT, product development, and marketing initiatives to support our commercial business."
- Registered buyers totaled 2.62M at the end of FQ4, +8% Y/Y. GAAP costs/expenses rose 5% Y/Y to $117.9M.
- FQ4 results, PR
Jul. 10, 2014, 12:47 PM
Jul. 10, 2014, 10:44 AM
- Liquidity Services (LQDT -11%) now expects FQ3 (June quarter) EPS to be 10%-20% below prior guidance of $0.28-$0.34; consensus is at $0.30. GMV is still expected to be in a range of $225M-$250M.
- Liquidity also discloses sales of "selected rolling stock and other assets" under its DoD surplus auction contract have "ceased at the request of DLA pending further review of the impact of regulatory rules, unrelated to the Companys performance or conduct, on the DLA rolling stock property stream."
- The halt has led to the cancellation of some June quarter and future asset sales. Liquidity expects the move will "adversely impact" FY14 results.
- Shares are making new 52-week lows, and are down 42% YTD. They tumbled in May following an EPS miss and guidance cut, and in April following the loss of the DoD's rolling stock contract.
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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