Liquidity Services shares up on bright outlook

NEW YORK (AP) — Shares of Liquidity Services Inc. hit an all-time high Thursday after the online auctions company said its fiscal second-quarter results soared from a year earlier and it raised its earnings expectations for the fiscal year.

For the full year that ends in September, the company now expects to earn $1.64 to $1.70 per share, excluding one-time items, up from a previous forecast of $1.32 to $1.38 per share.

Analysts polled by FactSet forecast a profit of $1.44 per share.

The company said that over the long term, it expects stronger demand for the surplus goods sold in its marketplaces as consumers seek bargains. It also sees growth as businesses outsource more of their supply chain services. Liquidity Services, which is based in Washington, also has government agencies as customers.

In the January-March quarter, the company earned $18.8 million, or 57 cents per share, up nearly fourfold from net income of $5.1 million, or 18 cents per share, in the first three months of 2011.

Excluding costs of paying employees with stock, acquisitions and other items, earnings were 52 cents per share.

Revenue rose 41 percent to $125.7 million from $89.4 million a year ago.

Analysts expected a profit of 37 cents per share on revenue of $122.8 million.

The stock gained $7.43, or 14 percent, to $62.36 in just before the market close Thursday. Shares earlier hit an all-time high of $64.39. Shares have traded since 2006.