Ritchie Bros. Auctioneers (TSX: RBA, NYSE:RBA), an industrial equipment auctioneer based in British Columbia, Canada, reported today that profits increased by 5% during the third quarter, beating analyst estimates.
For the third quarter, the company reported profits of $13.5 million, or 13 cents per diluted share, compared to profits of $12.9 million, or 12 cents per diluted share, for the year-ago period. Analysts expected profits of 9 cents per share.
The company’s revenues during the third quarter totalled $82.2 million, an 8% increase from the prior year, trumping analyst estimates of $79 million.
During the third quarter, the company auctioned off $751 million worth of goods, up from $693 million from Q3 of 2009.
Commenting on the results, Peter Blake, CEO of Ritchie Bros., said, “Although we are very pleased with our performance in the third quarter of this year, we are still seeing considerable uncertainty in our major marketplaces and we believe the used equipment market has not yet returned to a balanced state. As a result, we continue to believe that we will face challenging market conditions for the remainder of 2010, particularly in the U.S.”
For the nine months ended September 30, 2010, the company earned $52.4 million, or 49 cents per diluted share, compared to $71.6 million, or 68 cents per diluted share for the same period last year.
Excluding special gains and losses, the company’s profits for the first nine months of the year were $51.6 million, or $0.49 per diluted share. For the same period last year, adjusted profits were $71.0 million, or $0.67 per diluted share.
Ritchie Bros. also reaffirmed today that its fiscal 2010 earnings guidance will be 25% to 30% below the adjusted profits in 2009. For fiscal 2009, the company reported adjusted profits of $92 million, or 87 cents per diluted share. Analysts are expecting the company to report earnings per share of 64 cents for fiscal 2010.
Despite beating analyst estimates, the company’s shares slipped 1.3% to trade at $21.33 as of 3:48 ET.
Disclosure: no position