Shares of Liquidity Services Management (Stock: LQDT) declined on Thursday 1/31/2013. At the end of the trading day, the stock had fallen by 22.40%. The firm reported quarterly revenue numbers that missed stock analysts’ consensus. Analysts were expecting 1st quarter revenue of $130.7 million versus the $122.2 million announced by LQDT.
Liquidity Services also lowered guidance for 2013 EBITDA. The firm now expects a max EBITDA of $121 million – a 10% decline from their previously estimated $133 million (max) number.
With operations in 25 countries across the world (Europe, North America and APAC), Liquidity Services enables businesses, global Fortune 1000 corporations and governments to maximize the value of their underutilized and surplus industrial machinery, equipment, and assets.
On Thursday, LQDT’s management offered a less than upbeat business outlook. "While economic conditions have improved, our overall outlook remains cautious due to the volatility in the macro environment including instability arising from the fiscal cliff and debt ceiling negotiations".
In the longer term, however, the firm expects the below factors to help support business operations:
- Stronger demand
- An increase in their seller base (“as businesses and government agencies focus on reducing costs by outsourcing reverse supply chain activities, we expect our seller base to increase”)