Liquidity Services (NASDAQ:LQDT) Stock, Quote.Headers.trade-ideas

Liquidity Services

Liquidity Services Inc is an online auction marketplace. It manages and sells inventory and equipment for business and government clients by operating a network of e-commerce marketplaces that enable buyers and sellers to transact in an efficient, automated environment offering across different product categories. The company has four reportable segments: GovDeals, Capital Assets Group (CAG), Retail Supply Chain Group (RSCG), and Machinio. It generates majority of its revenue from Retail Supply Chain Group (RSCG) segment which consists of marketplaces that enable corporations located in the United States and Canada to sell excess, returned, and overstocked consumer goods. Geographically, a substantial portion the company's revenue is generated from its business in United States.

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Liquidity Services (NASDAQ: LQDT) reported Q4 revenues of $79.96 million, missing the analyst consensus of $82.73 million. 

Why E-Commerce Company Liquidity Services Shares Are Sliding Today

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Liquidity Services Inc

Asset Sales

Liquidity Services Selected By Oil And Gas Exploration And Production Company To Sell More Than 30 Cameron, Watson Corsair, Rig Works, And Franks Workover Rigs And Associated Surplus Assets In West Texas.

Liquidity Services (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LQDT#NASDAQ">LQDT</a>), a leading global commerce company powering the circular economy, today announced the sealed bid auction of energy surplus assets for a leading integrated oil and gas partner. Three unused, uninstalled ANGI compressed natural gas (CNG) refueling stations are currently available until 6:00 pm EDT on September 12, 2024 on <a href="https://www.globenewswire.com/Tracker?data=IVVMVziYzzR_eNzRSyT8zSj8WTK6pIVgbxraq4hOgmgj5J4eaoN7ilK9VgOF60ShZJTvEc7-fW_PyA-i30GHR0kRIruhF3huVrVuoHjB3pitPP6IdmnyTOmkB_dKXxtM8MnG_emBqhXNF_uiQ4SXE7lyBW7sSD-KOg5Dc52GH2BpOmLkiL5asBFdG7LyneZPKW9UmshulBqbZYRexWzWRAEdtiMAbdaxvRWSQpxMomiJ8vX2R-BSfwVLujD9klckOyYDc5StSWgxINy7wU7Usw==">AllSurplus.com</a>, the leading online marketplace for surplus business assets.

Liquidity Services Announced The Sealed Bid Auction Of Energy Surplus Assets For An Integrated Oil And Gas Partner. 3 Unused, Uninstalled ANGI Compressed Natural Gas Refueling Stations

Barrington Research analyst Gary Prestopino maintains Liquidity Services (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LQDT#NASDAQ">LQDT</a>) with a Outperform and maintains $27 price target.

Barrington Research Maintains Outperform on Liquidity Services, Maintains $27 Price Target

Liquidity Services Partners With Aaron Industrial Solutions To Sell Unused Assets For Global Energy Leader In China, Featuring Over 60 Sumimoto Cryogenic Heat Exchangers Available On AllSurplus.com Until August 31, 2024

Liquidity Services (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LQDT#NASDAQ">LQDT</a>), a leading global commerce company powering the circular economy and Tiger Group, a major asset valuation, advisory and disposition services provider, have announced the fifth auction in a series of court-ordered auctions related to the bankruptcy of national energy services firm El Dorado Gas &amp; Oil (Bankruptcy Case No. 23-51715). More than 230 energy assets based in Three Rivers, Texas are currently available until August 28, 2024 on <a href="https://www.globenewswire.com/Tracker?data=XAxpyakpjIf0mxQSaWt5twSaCA6ZenL97EpMRHzLqAUEedmiH4bTHc7nNRAtK0vtOcrQOAwkmvrGud6Amo-ua__AQlt_nrI-XNwrPYnoC6keRlLfqQDwWa3Xa-5EqVAbSHZfLwxvd7f9uU4LHJbxHkABzL300hyYvuWxLE1Md-GdxZ_k5NyaH65a4-p650sLj3p2MZ5bEZ8FwbFH8PD1C7uAlHr9yCXJXt579TSCQ-Coa1oGNBrc4lP0mMwYZ-YiRHTqGt7cO8kWK6LgyNTWnw==">AllSurplus.com</a>.

Liquidity Services And Tiger Group Announce The Fifth Auction In A Series Of Court-Ordered Auctions Related To The Bankruptcy Of National Energy Services Firm El Dorado Gas & Oil; Shares See A Pop To The Upside

During the last three months, 4 analysts shared their evaluations of Liquidity Services (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LQDT#NASDAQ">LQDT</a>), revealing diverse outlooks from bullish to bearish.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $27.0, with a high estimate of $27.00 and a low estimate of $27.00. The current average, unchanged from the previous average price target, holds steady. 
<img src="https://www.benzinga.com/files/images/story/2024/1723147522_0.png" alt="price target chart" />
<h2>Decoding Analyst Ratings: A Detailed Look</h2>
The standing of Liquidity Services among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Gary Prestopino</td>
<td>Barrington Research</td>
<td>Maintains</td>
<td>Outperform</td>
<td>$27.00</td>
<td>$27.00</td>
</tr>
<tr>
<td>Gary Prestopino</td>
<td>Barrington Research</td>
<td>Maintains</td>
<td>Outperform</td>
<td>$27.00</td>
<td>$27.00</td>
</tr>
<tr>
<td>Gary Prestopino</td>
<td>Barrington Research</td>
<td>Maintains</td>
<td>Outperform</td>
<td>$27.00</td>
<td>$27.00</td>
</tr>
<tr>
<td>Gary Prestopino</td>
<td>Barrington Research</td>
<td>Maintains</td>
<td>Outperform</td>
<td>$27.00</td>
<td>$27.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Liquidity Services. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Liquidity Services compared to the broader market.</li>
<li>Price Targets: Delving into movements, analysts provide estimates for the future value of Liquidity Services's stock. This analysis reveals shifts in analysts' expectations over time.</li>
</ul>
Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Liquidity Services's market standing. Stay informed and make data-driven decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/LQDT/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Liquidity Services analyst ratings.</a>
If you are interested in following small-cap stock news and performance <a href="https://www.benzinga.com/news/small-cap">you can start by tracking it here</a>.
<h2>All You Need to Know About Liquidity Services</h2>
Liquidity Services Inc is an online auction marketplace. It manages and sells inventory and equipment for business and government clients by operating a network of e-commerce marketplaces that enable buyers and sellers to transact in an efficient, automated environment offering across different product categories. The company has four reportable segments: GovDeals, Capital Assets Group (CAG), Retail Supply Chain Group (RSCG), and Machinio. It generates majority of its revenue from Retail Supply Chain Group (RSCG) segment which consists of marketplaces that enable corporations located in the United States and Canada to sell excess, returned, and overstocked consumer goods. Geographically, a substantial portion the company's revenue is generated from its business in United States.
<h3>Liquidity Services's Economic Impact: An Analysis</h3>
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
Revenue Growth: Liquidity Services's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 12.28%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.
Net Margin: Liquidity Services's net margin is impressive, surpassing industry averages. With a net margin of 6.24%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Liquidity Services's ROE stands out, surpassing industry averages. With an impressive ROE of 3.47%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Liquidity Services's ROA stands out, surpassing industry averages. With an impressive ROA of 1.96%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.07.
<h2>The Basics of Analyst Ratings</h2>
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

A Glimpse Into The Expert Outlook On Liquidity Services Through 4 Analysts

Our&nbsp;Q4-FY24&nbsp;guidance&nbsp;is as follows:
GMV&nbsp;- We expect GMV to range from&nbsp;$330 million&nbsp;to&nbsp;$365 million.
GAAP Net Income&nbsp;- We expect GAAP Net Income to range from&nbsp;$5.0 million&nbsp;to&nbsp;$7.0 million.
GAAP Diluted EPS&nbsp;- We expect GAAP Diluted EPS to range from&nbsp;$0.16&nbsp;to&nbsp;$0.22.
Non-GAAP Adjusted EBITDA&nbsp;-We expect Non-GAAP Adjusted EBITDA to range from&nbsp;$12.0 million&nbsp;to&nbsp;$15.0 million.
Non-GAAP Adjusted Diluted EPS&nbsp;- We expect Non-GAAP Adjusted EPS to range from&nbsp;$0.25&nbsp;to&nbsp;$0.32.

Liquidity Services Expects Q4 Adj EPS Of $0.25-$0.32 Vs $0.25 Est

Earnings Beats

Liquidity Services Q3 2024 Adj. EPS $0.30 Beats $0.26 Estimate, Sales $93.613M Beat $88.823M Estimate

Liquidity Services (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LQDT#NASDAQ">LQDT</a>), a leading global commerce company powering the circular economy, has partnered with Tiger Group, a major asset valuation, advisory and disposition services provider, to sell energy equipment and related assets on behalf of national energy services firm El Dorado Gas &amp; Oil, Inc as part of a series of court-ordered online auctions related to the organization&#39;s bankruptcy (Bankruptcy Case No. 23-51715). More than 300 energy assets based in Alice, Texas and Tilden, Texas are currently available until August 13, 2024 on&nbsp;<a href="https://www.globenewswire.com/Tracker?data=Q0y5keIws1RIh4aI4_5O7KVLfu7AXs2JnhiwkdNexEm5WJOz5RuodAa1KAGPIWPmiR68L2DicE9s-I3zQ_UniH75RkrRl914xfNGVZ6RjXZxFLxxM_XvMFRqtne2cdv3t0HA6Fy0CdSWyvVI7G3yHgYruk9sOl7y84tLqaT0tLvxA3TyKQPhadgwd4vG9Wyl0DPyqMYyZi8xvnHB3vXUtWv-jksYNX3SF4jEw_jyTqe3Xrmg9p5uL_eZTGeQAnxEEmBKVDdRSQobrQGCt35KRQ==" target="_blank">AllSurplus.com</a>.

Liquidity Services and Tiger Group Auction Over 300 Energy Assets Amid El Dorado Bankruptcy

Liquidity Services Partners With Aaron Industrial Solutions and Binswanger, To Sell Turnkey Medical Device Manufacturing Plant

Liquidity Services (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LQDT#NASDAQ">LQDT</a>) underwent analysis by 4 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.
The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $27.0, a high estimate of $27.00, and a low estimate of $27.00. Holding firm without variation, the current average remains at the previous average price target. 
<img src="https://www.benzinga.com/files/images/story/2024/1716912029_0.png" alt="price target chart" />
<h2>Investigating Analyst Ratings: An Elaborate Study</h2>
A comprehensive examination of how financial experts perceive Liquidity Services is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Gary Prestopino</td>
<td>Barrington Research</td>
<td>Maintains</td>
<td>Outperform</td>
<td>$27.00</td>
<td>$27.00</td>
</tr>
<tr>
<td>Gary Prestopino</td>
<td>Barrington Research</td>
<td>Maintains</td>
<td>Outperform</td>
<td>$27.00</td>
<td>$27.00</td>
</tr>
<tr>
<td>Gary Prestopino</td>
<td>Barrington Research</td>
<td>Maintains</td>
<td>Outperform</td>
<td>$27.00</td>
<td>$27.00</td>
</tr>
<tr>
<td>Gary Prestopino</td>
<td>Barrington Research</td>
<td>Maintains</td>
<td>Outperform</td>
<td>$27.00</td>
<td>$27.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Liquidity Services. This insight gives a snapshot of analysts' perspectives on the current state of the company.</li>
<li>Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Liquidity Services compared to the broader market.</li>
<li>Price Targets: Delving into movements, analysts provide estimates for the future value of Liquidity Services's stock. This analysis reveals shifts in analysts' expectations over time.</li>
</ul>
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Liquidity Services's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/LQDT/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Liquidity Services analyst ratings.</a>
If you are interested in following small-cap stock news and performance <a href="https://www.benzinga.com/news/small-cap">you can start by tracking it here</a>.
<h2>About Liquidity Services</h2>
Liquidity Services Inc is an online auction marketplace. It manages and sells inventory and equipment for business and government clients by operating a network of e-commerce marketplaces that enable buyers and sellers to transact in an efficient, automated environment offering across different product categories. The company has four reportable segments: GovDeals, Capital Assets Group (CAG), Retail Supply Chain Group (RSCG), and Machinio. It generates majority of its revenue from Retail Supply Chain Group (RSCG) segment which consists of marketplaces that enable corporations located in the United States and Canada to sell excess, returned, and overstocked consumer goods. Geographically, a substantial portion the company's revenue is generated from its business in United States.
<h3>Unraveling the Financial Story of Liquidity Services</h3>
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
Positive Revenue Trend: Examining Liquidity Services's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 12.28% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.
Net Margin: Liquidity Services's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 6.24% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Liquidity Services's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.47% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.96%, the company showcases effective utilization of assets.
Debt Management: With a below-average debt-to-equity ratio of 0.07, Liquidity Services adopts a prudent financial strategy, indicating a balanced approach to debt management.
<h2>The Significance of Analyst Ratings Explained</h2>
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Analyst Scoreboard: 4 Ratings For Liquidity Services

Our&nbsp;Q3-FY24&nbsp;guidance&nbsp;is as follows:
GMV&nbsp;- We expect GMV to range from&nbsp;$350 million&nbsp;to&nbsp;$385 million.
GAAP Net Income&nbsp;- We expect GAAP Net Income to range from&nbsp;$3.5 million&nbsp;to&nbsp;$6.5 million.
GAAP Diluted EPS&nbsp;- We expect GAAP Diluted EPS to range from&nbsp;$0.11&nbsp;to&nbsp;$0.21.
Non-GAAP Adjusted EBITDA&nbsp;-We expect Non-GAAP Adjusted EBITDA to range from&nbsp;$10.5 million&nbsp;to&nbsp;$13.5 million.
Non-GAAP Adjusted Diluted EPS&nbsp;- We expect Non-GAAP Adjusted EPS to range from&nbsp;$0.20&nbsp;to&nbsp;$0.28.

Liquidity Services Expects Q3 Adj EPS of $0.20-$0.28 Vs $0.32 Est

Liquidity Services (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LQDT#NASDAQ">LQDT</a>) reported quarterly earnings of $0.27 per share which beat the analyst consensus estimate of $0.21 by 28.57 percent. The company reported quarterly sales of $91.453 million which beat the analyst consensus estimate of $79.200 million by 15.47 percent. This is a 12.28 percent increase over sales of $81.453 million the same period last year.

Liquidity Services Q2 2024 Adj EPS $0.27 Beats $0.21 Estimate, Sales $91.453M Beat $79.200M Estimate

Barrington Research analyst Gary Prestopino reiterates Liquidity Services (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LQDT#NASDAQ">LQDT</a>) with a Outperform and maintains $27 price target.

Reiteration

Barrington Research Reiterates Outperform on Liquidity Services, Maintains $27 Price Target

Shopify's (SHOP) first-quarter results, which beat analyst expectations on top and bottom lines, were overshadowed by disappointing revenue and gross margin guidance for the current quarter. Should you consider adding this stock to your portfolio? Read more to find out… Shopify Inc. (<a href="https://stocknews.com/stock/SHOP/">SHOP</a>), a prominent Canada-based provider of essential internet infrastructure of commerce, beat on the top and bottom lines in the first quarter of fiscal 2024. SHOP reported first-quarter <a href="https://s27.q4cdn.com/572064924/files/doc_financials/2024/q1/Exhibit-99-1-Press-Release-Q1-2024_Final.pdf">revenue of $1.86 billion</a>, slightly surpassing analysts' estimate of $1.85 billion.
Moreover, Gross Merchandise Volume (GMV) rose 23% year-over-year to $60.90 billion. Merchant Solutions revenue witnessed a 20% year-over-year increase, driven by the growth of GMV and continued penetration of Shopify Payments. Also, Gross Payments Volume (GPV) rose to $36.20 billion, 60% of GMV, compared to $27.50 billion, or 56%, for the same quarter of 2023.
Further, Shopify's non-GAAP net income per share was $0.20, compared to the consensus estimate of $0.17.
"You're seeing the strongest version of Shopify in our history. Our outstanding Q1 performance is clear proof of our dedication to the new shape of Shopify, our commitment to operating with a consistent team size, and our focus on building for the long-term to deliver both growth and profitability," said Harley Finkelstein, President of Shopify.
"We are building a 100-year company, and we will continue to remain fiercely agile, capitalizing on every opportunity that accelerates the success of our merchants, enables us to continue to build world-class products, and enhances operational efficiency for better returns," Finkelstein added.
Despite better-than-expected first-quarter results, the Canadian e-commerce company gave disappointing guidance for the second quarter. SHOP expects revenue to grow at a high-teens percentage rate, which translates into a year-over-year growth rate in the low-to-mid-twenties. That aligns with the consensus revenue estimate for 18.6% year-over-year growth but still indicates a slowdown from recent quarters.
In addition, the company expect its gross margin to decline by nearly 50 basis points compared to the first quarter of 2023 due to the sale of Shopify's logistics business to freight forwarder Flexport. Its free cash flow margin is expected to be similar to the first-quarter 2024 free cash flow margin.
On a conference call with analysts, SHOP's executives highlighted that consumer spending in the U.S. remains robust, but "we have factored in headwinds related to foreign exchange from the strong U.S. dollar and some softness in European consumer spending in our Q2 outlook."
Shares of SHOP have gained 16% over the past month to close the last trading session at $66.37. However, the stock has plunged 15.3% over the past six months and 14.8% year-to-date.
Let's look at factors that could influence SHOP's performance in the upcoming months.
Robust Financial Performance
For the first quarter that ended March 31, 2024, SHOP's revenues increased 23.4% year-over-year to $1.86 billion. Revenues from subscription solutions and merchant solutions rose 33.8% and 19.9% from the prior year's quarter, respectively. Its adjusted gross profit grew 30.4% year-over-year to $962 million.
Additionally, Shopify's adjusted <a href="https://www.investopedia.com/terms/o/operatingincome.asp#:~:text=The%20Bottom%20Line,-Companies%20may%20be&amp;text=Operating%20income%20can%20be%20calculated%20several%20different%20ways%2C%20but%20it,such%20as%20interest%20or%20taxes.">operating income</a> was $201 million, compared to an operating loss of $31 million in the previous year's quarter. Its adjusted net income rose significantly year-over-year to $256 million. Also, its adjusted net income per share attributable to shareholders came in at $0.20, an increase of 1,900% year-over-year.
The company's free cash flow was $232 million, 169.8% from the prior year's period. As of March 31, 2024, Shopify's cash and cash equivalents stood at $1.62 billion, compared to $1.41 billion as of December 31, 2023.
Mixed Analyst Expectations
Analysts expect SHOP's revenue for the third quarter (ending September 2024) to grow 29.7% year-over-year to $2.07 billion. However, the consensus EPS estimate of $0.23 for the same period indicates a 4% year-over-year decline. Also, the company has surpassed consensus revenue and EPS estimates in all four trailing quarters.
For the fiscal year ending December 2024, Street expects SHOP's revenue and EPS to grow 20.9% and 34.3% from the prior year to $8.54 billion and $0.98, respectively. In addition, the company's revenue and EPS for the fiscal year 2025 are expected to increase 20.2% and 28.3% year-over-year to $10.26 billion and $1.26, respectively.
Mixed Profitability
SHOP's trailing-12-month gross profit margin of 50.65% is 2.5% higher than the 49.43% industry average. Also, the stock's trailing-12-month EBIT margin of 7.39% is 51.3% higher than the 4.89% industry average. However, its trailing-12-month EBITDA margin of 8.07% is 17.1% lower than the industry average of 9.73%.
Further, the stock's trailing-12-month net income margin of negative 2.82% compared to the 2.94% industry average. Its trailing-12-month ROCE of negative 2.41% is also unfavorably compared to the industry average of 4.11%.
Elevated Valuation
In terms of forward non-GAAP P/E, SHOP is trading at 67.71x, 183.5% higher than the industry average of 23.88x. The stock's forward EV/Sales multiple of 9.55 is 225.5% higher than the industry average of 2.93. Likewise, its forward Price/Cash Flow of 63.39x is considerably higher than the industry average of 23.79x.
Moreover, the stock's forward Price/Sales multiple of 10.02 is 247.1% higher than the industry average of 2.89. Its forward EV/EBITDA of 67.95x is 360.1% higher than the industry average of 14.77x.
POWR Ratings Reflect Uncertainty
SHOP's mixed fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of C, which translates to Neutral in our proprietary rating system. The POWR Ratings are calculated by taking into account 118 different factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. SQ has a C grade for Quality, in sync with its lower-than-industry profitability. The stock has a C grade for Sentiment, consistent with mixed analyst estimates.
Within the <a href="https://stocknews.com/category/internet-services/">Internet - Services</a> industry, SHOP is ranked #22 out of 28 stocks.
Beyond what I have stated above, we have also given SHOP grades for Growth, Momentum, Stability, and Value. Get all SQ ratings <a href="https://stocknews.com/stock/SHOP/">here</a>.
Bottom Line
SHOP surpassed analysts' estimates for revenue and earnings in the first quarter of 2024. However, the stock plunged significantly after reporting its first-quarter results as Shopify provided weak revenue and profit guidance for the second quarter, unsettling investors.
Even after <a href="https://www.cnbc.com/2023/05/04/shopify-cuts-20percent-of-its-workforce-shares-surge-on-earnings-beat.html">cutting its workforce by 20%</a> last May, the Canadian e-commerce company still faces an exceptionally high expense structure. Also, Shopify is trading at a premium compared to its peers. Given SHOP's decelerating profitability, stretched valuation, and uncertain near-term outlook, waiting for a better entry point in this stock seems wise now.
How Does Shopify Inc. (SHOP) Stack Up Against Its Peers?
Given its near-term uncertain prospects, the odds of SHOP outperforming in the weeks and months ahead are compromised. However, there are many industry peers with much more impressive POWR Ratings. So, consider these three A (Strong Buy) or B (Buy) stocks from the <a href="https://stocknews.com/category/internet-services/">Internet-Services</a> Industry:
SMIMILARWEB LTD. (<a href="https://stocknews.com/stock/SMWB/">SMWB</a>)
Liquidity Services, Inc. (<a href="https://stocknews.com/stock/LQDT/">LQDT</a>)
TrueCar, Inc. (<a href="https://stocknews.com/stock/TRUE/">TRUE</a>)
To explore more A- and B-rated internet stocks, <a href="https://stocknews.com/category/internet-services/">click here</a>.
What To Do Next?
Discover 10 widely held stocks that our proprietary model shows have tremendous downside potential. Please make sure none of these "death trap" stocks are lurking in your portfolio:
<a href="https://report.stocknews.com/free-report/10-stocks-to-sell/?formplacement=artbotad_10sell">10 Stocks to SELL NOW! &gt;</a> 

<hr />
SHOP shares were trading at $66.41 per share on Friday morning, up $0.04 (+0.06%). Year-to-date, SHOP has declined -14.75%, versus a 16.06% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Mangeet Kaur Bouns</h2> <img src='https:/wp-content/uploads/2022/01/Mangeet-Kaur-Bouns_Image-4.jpg' style="float:left; padding:5px;width:125px;">Mangeet's keen interest in the stock market led her to become an investment researcher and financial journalist. Using her fundamental approach to analyzing stocks, Mangeet's looks to help retail investors understand the underlying factors before making investment decisions.<a href="https://stocknews.com/authors/?author=mangeet-kaurbouns">More...</a>The post <a href=https://stocknews.com/news/shop-lqdt-smwb-true-should-you-add-shopify-stock-to-your-portfolio/>Should You Add Shopify Stock to Your Portfolio?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Should You Add Shopify Stock to Your Portfolio?

Liquidity Services Q3 2024 Earnings Preview

Liquidity Services Non-GAAP EPS of $0.30 beats by $0.04, revenue of $93.6M beats by $4.78M

Analysts have been eager to weigh in on the Consumer Cyclical sector with new ratings on LCI Industries (LCII – Research Report), Light & Wonder (L...

Analysts Offer Insights on Consumer Cyclical Companies: LCI Industries (LCII), Light & Wonder (LNW) and Liquidity Services (LQDT)

Liquidity Services, Inc. (LQDT) Q3 2024 Earnings Call Transcript

With changing consumer preferences, rising online shopping trends, and AI adoption, the e-commerce industry is flourishing. Thus, fundamentally sound e-commerce stocks eBay (EBAY), Liquidity Services (LQDT), and Natural Health Trends (NHTC) could be ideal buys. Keep reading... The increasing internet penetration and changing customer preference has boosted the e-commerce market demand worldwide. Also, the rapid technological advancements, increasing online shopping, security advancements, and AI are propelling the market growth.
Therefore, given the industry's robust prospects, investors could consider investing in quality e-commerce stocks eBay Inc. (<a href="https://stocknews.com/stock/EBAY/">EBAY</a>), Liquidity Services, Inc. (<a href="https://stocknews.com/stock/LQDT/">LQDT</a>), and Natural Health Trends Corp. (<a href="https://stocknews.com/stock/NHTC/">NHTC</a>) for potential gains.
Improved accessibility to the internet, convenience, and changing consumer preference has rapidly transformed the e-commerce market. The number of users in the <a href="https://www.statista.com/statistics/273957/number-of-digital-buyers-in-the-united-states/">E-commerce market in the US</a> have grown each year and has been projected to grow continuously from 2024 to 2029, resulting in total 60 million users, reflecting a 21.9% rise.
Recently, the <a href="https://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf">Census Bureau of the Department of Commerce</a> reported U.S. retail e-commerce sales of $291.60 billion for the second quarter 2024, indicating an increase of 1.3% from the first quarter. The second quarter of 2024's e-commerce estimate grew by 6.7% from the prior year's quarter. The e-commerce sales from the second quarter accounted for 16% of total sales.
With over 33% of the worldwide population engaging in online shopping, the global e-commerce industry is projected to value $6.3 trillion in 2024, up 8.8% from 2023. The market is further expected to hit the $8 trillion mark by 2027, <a href="https://www.sellerscommerce.com/blog/ecommerce-statistics/#:~:text=The%20global%20eCommerce%20market%20will,reach%20%248%20trillion%20by%202027.">growing at a CAGR of 7.8%</a>.
The growing need for voice recognition and artificial reality technologies to improve customer experience, internet users' and digital buyers' rapid growth are emerging as the key contributors to the <a href="https://www.renub.com/global-e-commerce-market-p.php">e-commerce market demand</a>.
Given the industry's robust outlook, investing in fundamentally strong e-commerce stocks EBAY, LQDT, and NHTC could be wise now.
Let's discuss the fundamentals of these stocks in detail:
eBay Inc. (<a href="https://stocknews.com/stock/EBAY/">EBAY</a>)
EBAY operates marketplace platforms that connect buyers and sellers worldwide. The company's marketplace platform consist its online marketplace at ebay.com, off-platform businesses, and the eBay suite of mobile apps.
On July 10, EBAY unveiled Business Cash Advance, a new eBay Seller Capital revenue-based financing product created by Liberis. Business Cash Advance is aimed at supporting eBay sellers at every business stage by providing eligible U.S. eBay sellers up to $1 million in working capital in less than 24 hours.
On April 10, EBAY and Collectors, parent company of PSA, signed a definitive agreements to enter into a series of transactions including a commercial agreement, the sale of Goldin from Collectors to eBay, and the sale of the eBay vault from eBay to PSA. The transaction support more streamlined buying, selling, grading, and storage experiences.
During the second quarter that ended June 30, 2024, EBAY's net revenues increased 1.3% year-over-year to $2.57 billion, while its income from operations grew 6% from the year-ago value to $549 million. The company's non-GAAP <a href="https://www.investopedia.com/terms/n/netincome.asp">net income</a> from continuing operations of $602 million and $1.18 per share, up 8.5% and 14.6% over the prior year's quarter, respectively.
According to the company's third quarter 2024 guidance, EBAY expects its revenue between $2.50 billion and $2.56 billion. Its non-GAAP EPS is expected to be $1.15 - $1.20.
Analysts expect EBAY's revenue for the third quarter (ending September 2024) to increase 1.7% year-over-year to $2.54 billion and its EPS for the ongoing quarter is expected to grow 14.5% year-over-year to $1.18. Furthermore, the company has topped the consensus revenue and EPS estimates in each of the trailing four quarters.
Shares of EBAY have gained 33.3% over the past six months and 36.4% over the past year to close the last trading session at $59.02.
EBAY's bright prospects are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
EBAY has an A grade for Quality. It also has a B grade for Momentum. It is ranked #18 out of 51 stocks in the B-rated <a href="https://stocknews.com/category/internet/">Internet</a> industry.
To check other POWR Ratings of EBAY for Value, Growth, Stability, and Sentiment, <a href="https://stocknews.com/stock/EBAY/">click here</a>.
Liquidity Services, Inc. (<a href="https://stocknews.com/stock/LQDT/">LQDT</a>)
LQDT provides e-commerce marketplaces, self-directed auction listing tools, and value-added services internationally. The company operates in four segments: GovDeals; Retail Supply Chain Group; Capital Assets Group; and Machinio.
On August 5, LQDT partnered with Tiger Group, a major asset valuation, advisory and disposition services provider, to sell energy equipment and related assets on behalf of national energy services firm El Dorado Gas &amp; Oil, Inc as part of a court-ordered online auctions related to the organization's bankruptcy.
On July 30, LQDT relocated and expanded its Indianapolis operation, moving its reverse logistics warehouse in Plainfield, Indiana, to a larger 203,840 sq ft facility situated in Brownsburg, Indiana. This new facility allows more excess inventory from retailers, enhances the customer experience for liquidation resellers and customers, and reaffirms its commitment to sustainability.
During the third quarter that ended June 30, 2024, LQDT's total revenue increased 15.9% year-over-year to $93.61 million and its income from operations was $7.89 million. The company's non-GAAP adjusted net income and non-GAAP adjusted EPS came in at $9.49 million and $0.30, indicating growth of 7.8% and 7.1% year-over-year, respectively.
In addition, the company's non-GAAP adjusted EBITDA rose 10.3% from the prior year's quarter to $14.71 million.
Analysts expect LQDT's revenue and EPS for the fourth quarter (ending September 2024) to increase 16.4% and 7.7% year-over-year to $93.05 million and $0.28, respectively. Moreover, the company surpassed the consensus EPS estimates in three of the trailing four quarters.
Over the past six months, the stock has surged 26.1% and 18.5% over the past year to close the last trading session at $21.57.
LQDT's POWR Ratings reflect its robust outlook. The stock has an overall rating of A, translating to a Strong Buy in our proprietary rating system.
LQDT has an A grade for Quality and Sentiment and a B grade for Growth. It is ranked #2 among 26 stocks within the <a href="https://stocknews.com/category/internet-services/">Internet - Services</a> industry.
To see the other ratings of LQDT for Value, Stability, and Momentum, <a href="https://stocknews.com/stock/LQDT/">click here</a>.
Natural Health Trends Corp. (<a href="https://stocknews.com/stock/NHTC/">NHTC</a>)
Headquartered in Tsim Sha Tsui, Hong Kong, NHTC is a direct-selling and e-commerce company which provides personal care, wellness, and lifestyle products under its NHT Global brand. It offers wellness products, like liquid, encapsulated, tableted and powder dietary and nutritional supplements, vitamins, and minerals, and herbal products comprising herbal supplements.
In terms of trailing-12-month EV/Sales, NHTC is trading at 0.76x, 58.8% lower than the industry average of 1.84x. Likewise, the stock's trailing-12-month Price/Sales multiple of 1.81 is 32.8% lower than the industry average of 1.36. Also, its trailing-12-month Price/Book of 2.09x is 18.8% lower than the industry average of 2.58x.
For the second quarter that ended June 30, 2024, NHTC reported net sales of $10.47 million, and its gross profit was $7.78 million. The company's net income came in at $173 thousand and $0.02 per common share, against net loss of $219 thousand and $0.02 per common share during prior year's quarter.
Furthermore, the company's cash and cash equivalents and total assets stood at $15.58 million and $61.49 million as of June 30, 2024.
Over the past six months, NHTC's stock has surged 12.9% and 33.7% over the past year to close the last trading session at $6.89.
NHTC's sound fundamentals are reflected in its POWR Ratings. The stock has an overall grade of B, translating to a Buy in our proprietary rating system.
NHTC has a B grade for Growth, Stability, and Sentiment. It is ranked #3 among the 10 stocks within the A-rated <a href="https://stocknews.com/category/medical-consumer-goods/">Medical – Consumer Goods</a> industry.
To see the other ratings of NHTC for Momentum, Quality, and Value, <a href="https://stocknews.com/stock/NHTC/">click here</a>.
What To Do Next?
Discover 10 widely held stocks that our proprietary model shows have tremendous downside potential. Please make sure none of these "death trap" stocks are lurking in your portfolio:
<a href="https://report.stocknews.com/free-report/10-stocks-to-sell/?formplacement=artbotad_10sell">10 Stocks to SELL NOW! &gt;</a>

<hr />
EBAY shares were trading at $58.69 per share on Friday afternoon, down $0.33 (-0.56%). Year-to-date, EBAY has gained 35.97%, versus a 18.67% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rjkumari Saxena</h2> <img src='https:/wp-content/uploads/2024/04/Rajkumari-Saxena_Image-1.jpeg' style="float:left; padding:5px;width:125px;">Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.<a href="https://stocknews.com/authors/?author=rajkumari-saxena">More...</a>The post <a href=https://stocknews.com/news/ebay-lqdt-nhtc-3-e-commerce-stocks-to-buy-as-online-shopping-thrives/>3 E-Commerce Stocks to Buy as Online Shopping Thrives</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 E-Commerce Stocks to Buy as Online Shopping Thrives

Barrington analyst Gary Prestopino maintained a Buy rating on Liquidity Services (LQDT – Research Report) today and set a price target of $27.00. G...

Liquidity Services: A Strong Buy on Robust Q3 Performance and Promising Growth Prospects

Craig-Hallum analyst George Sutton reiterated a Buy rating on Liquidity Services (LQDT – Research Report) today. The company's shares closed yester...

Craig-Hallum Remains a Buy on Liquidity Services (LQDT)

EBAY

LCII

NHTC

SHOP

SMWB

TRUE

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