Why Liquidity Services (LQDT) Is Up Today

NEW YORK (TheStreet) -- Liquidity Services (LQDT) was rising 14.5% to $24.38 Friday after beating analyst estimates for earnings and revenue in its fiscal first-quarter earnings report.

The company posted earnings of 32 cents a share for the first quarter, beating the Capital IQ Consensus Estimate of 22 cents a share by 10 cents. Revenue fell 0.2% year-over-year to $121.9 million, but still beat analyst estimates of $111.2 million.

Liquidity Services issued downside guidance for the second quarter for earnings between 33 cents and 37 cents a share. Analysts expect 46 cents a share in earnings for the quarter.

Despite the weak second-quarter guidance, the company reaffirmed its full year 2014 guidance with earnings between $1.60 and $1.76 a share. Analysts estimates call for earnings of $1.60 a share for the year.

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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 increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. 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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