Liquidity Services cuts 2013 profit outlook, shares down
(Reuters) - Online auctioneer Liquidity Services Inc (LQDT.O) cut its full-year earnings outlook as it expects economic uncertainties to hurt retail and industrial supply chains.
Shares of the company, which posted a better-than-expected first-quarter profit, were down more than 11 percent at $36.40 in trading before the bell.
The company, which auctions surplus and salvage assets, now expects full-year adjusted earnings of $1.90 to $2.02 per share, down from its prior view of $2.05 to $2.23 per share.
Analysts on average were expecting earnings of $2.15 per share, according to Thomson Reuters I/B/E/S.
Washington-headquartered Liquidity runs auction portals like liquidation.com and truckcenter.com to sell assets ranging from tablet computers to industrial equipments.
Liquidity said it plans to invest on its technology and products as it looks to expand its recently acquired businesses.
For the first quarter ended December 31, the company reported earnings of $6.7 million, or 20 cents per share, compared with $9.1 million, or 28 cents per share a year earlier.
Excluding items, it earned 41 cents per share.
Revenue rose 15 percent to 122.2 million. Gross merchandise volume rose 30 percent to $233.4 million.
Analysts on average were expecting earnings of 38 cents per share, on revenue of $130.7 million.
(Reporting by Bijoy Koyitty in Bangalore; Editing by Akshay Lodaya)
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