Why Liquidity Services Shares Jumped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Liquidity Services have jumped today by as much as 13% after the company said sales posted a big increase last month.
So what: The company said that sales rose 18% last month relative to the same period a year prior to $258 million. That was on target with Liquidity Services' previously provided guidance. The news gave investors relief, especially following the plunge in January on disappointing outlook.
Now what: Robert Baird analyst Colin Sebastian said that organic growth had increased to 10% last month, a significant improvement compared to the negative organic growth posted in the first two months of the year. The analyst remains bullish with an "outperform" rating. Liquidity Services is set to report full earnings on May 2 for the first quarter.
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The article Why Liquidity Services Shares Jumped originally appeared on Fool.com.Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool recommends Liquidity Services. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.