Stock drops as company reports lower earnings and revenue
- Liquidity Services shares fell 9.5% after decline in 1Q revenue and net profit
- First-quarter net income dropped to $1.91 million, or 6 cents per share
- First-quarter revenue fell to $71.3 million from $72.3 million
- Adjusted earnings per share for the second fiscal quarter projected to be between 17 cents and 27 cents
Shares of Liquidity Services fell 9.5% after the company reported a drop in revenue and profit for its first fiscal quarter. The stock is up almost 19% in the past 52 weeks. Liquidity Services said first-quarter net income fell to $1.91 million, or 6 cents per share, from $3.97 million, or 12 cents per share, a year ago. First-quarter revenue fell to $71.3 million from $72.3 million. For the second fiscal quarter, Liquidity Services expects net income of $3 million to $6 million, with earnings per share of 9 cents to 19 cents. Adjusted earnings per share are projected to be between 17 cents and 27 cents, compared with the consensus estimate of 21 cents.
Public Companies: Liquidity Services (N/A)
Private Companies:
Key People: Zaeem Shoaib (N/A)
Factuality Level: 7
Justification: The article provides specific financial information about Liquidity Services’ first fiscal quarter, including the drop in revenue and profit, as well as the stock’s performance. It also includes the company’s net income and earnings per share for the quarter, along with analysts’ forecasts. However, the article does not provide any additional context or analysis, and it does not mention any potential reasons for the drop in revenue and profit.
Noise Level: 3
Justification: The article provides relevant information about Liquidity Services’ drop in revenue and profit for its first fiscal quarter. It includes details about the stock price and compares it to the past 52 weeks. The article also mentions the analysts’ forecasts and the company’s expectations for the second fiscal quarter. However, it lacks in-depth analysis, antifragility considerations, and accountability of powerful people. It also does not provide actionable insights or support its claims with evidence or data.
Financial Relevance: Yes
Financial Markets Impacted: Shares of Liquidity Services
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to financial topics as it discusses the drop in revenue and profit for Liquidity Services. However, there is no mention of an extreme event.
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