Liquidity Services, Inc. (NASDAQ:LQDT) defied analyst predictions to release its third-quarter results, which were ahead of market expectations. The company beat expectations with revenues of US$94m arriving 5.4% ahead of forecasts. Statutory earnings per share (EPS) were US$0.19, 5.6% ahead of estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Liquidity Services after the latest results.

Taking into account the latest results, the most recent consensus for Liquidity Services from dual analysts is for revenues of US$373.7m in 2025. If met, it would imply a meaningful 11% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 30% to US$0.85. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$351.5m and earnings per share (EPS) of US$0.87 in 2025. So it's pretty clear consensus is mixed on Liquidity Services after the latest results; whilethe analysts lifted revenue numbers, they also administered a small dip in per-share earnings expectations.

Curiously, the consensus price target rose 15% to US$27.50. We can only conclude that the forecast revenue growth is expected to offset the impact of the expected fall in earnings.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 8.8% growth on an annualised basis. That is in line with its 10% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.6% annually. So it's pretty clear that Liquidity Services is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Liquidity Services. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Liquidity Services. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.