Why E-Commerce Company Liquidity Services Shares Are Sliding Today
Portfolio Pulse from Nabaparna Bhattacharya
Liquidity Services (NASDAQ:LQDT) reported Q4 revenues of $79.96 million, missing analyst expectations of $82.73 million, but saw a 6% Y/Y increase. Adjusted EPS was $0.26, surpassing the $0.24 estimate. GMV for Q4 rose 11% Y/Y to $315.6 million. Segment-wise, GovDeals revenue increased 13%, RSCG by 15%, while CAG decreased 27% due to the prior year's large transactions. Adjusted EBITDA was $12.8 million, up from the previous year. The company has a strong cash balance of $118.2 million and no financial debt. Q1 outlook anticipates GMV between $295 million-$325 million and adjusted EPS of $0.12-$0.19, with GAAP net income expected between $1.5 million-$4.0 million. LQDT shares dropped 12.6% to $17.40.

December 07, 2023 | 4:02 pm
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NEGATIVE IMPACT
Liquidity Services reported mixed Q4 results with revenue miss and EPS beat, strong cash position, and no debt. Shares fell 12.6% following the report.
The revenue miss is likely the primary driver of the negative stock reaction, as it suggests potential growth challenges. However, the EPS beat and strong balance sheet may provide some support to the stock price in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100