NEW YORK (TheStreet) -- Liquidity Services
(LQDT - Get Report) stock is plunging Thursday after the company missed first-quarter earnings and as guidance was reduced.
By late morning, shares had tanked 29.2% to $12.26.
Over the three months to March, the company earned 26 cents a share, 9 cents short of analyst averages compiled by Thomson Reuters.
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Management issued full-year earnings guidance of $1.10 to $1.27 a share, lower than consensus of $1.60 a share. Third-quarter profits between 28 cents and 34 cents a share fell short of analysts' estimate of 46 cents a share.
TheStreet Ratings team rates LIQUIDITY SERVICES INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate LIQUIDITY SERVICES INC (LQDT) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and a generally disappointing performance in the stock itself."
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