Liquidity Services, a leading provider of online marketplaces for surplus assets and inventory, experienced a decline in both revenue and profit for its first fiscal quarter. As a result, the company’s stock fell by 9.5% to $15.60 in recent trading. Despite this dip, the stock has still seen an overall increase of almost 19% over the past 52 weeks.
During the first quarter, Liquidity Services reported a net income of $1.91 million, or 6 cents per share. This is a decrease from the previous year’s first-quarter net income of $3.97 million, or 12 cents per share. While analysts surveyed by FactSet had predicted earnings of 7 cents per share, Liquidity Services fell slightly short.
Additionally, first-quarter revenue decreased from $72.3 million to $71.3 million. Adjusted earnings for the quarter were reported at 14 cents per share, compared to the expected 15 cents per share according to analysts polled by FactSet.
Looking ahead to the second fiscal quarter, Liquidity Services forecasts a net income range of $3 million to $6 million, translating to earnings per share between 9 cents and 19 cents. Adjusted earnings per share are projected to fall between 17 cents and 27 cents. The consensus estimate by analysts stands at 21 cents.
Liquidity Services will need to strategize and focus on improving its financial performance as it moves forward.