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Major Losers on November 29; LQDT, AAP, TIF

Shares of Liquidity Services Inc. (NASDAQ: LQDT), an auction marketplace for surplus and salvage assets, are sinking in trading today. At last check, LQDT shares were trading 17.49% lower at $36.08 on above average volume of 3.33 million. The stock fell to an intra-day low of $35.56 in trading today.

LQDT shares are sinking in trading today after the company reported its fourth-quarter and fiscal year 2012 financial results. For the quarter ended September 30, 2012, LQDT reported consolidated revenue of $122.3 million, up 52% over the same period in the previous year. The company’s adjusted EBITDA for the quarter was $23.1 million, up 85% over the same period in the previous year.

LQDT reported fourth-quarter net income of $5.5 million, or $0.17 per share. The company’s adjusted net income for the fourth quarter was $13.1 million, up 216% over the same period in the previous year.

Looking ahead, the company said that while economic conditions have improved, its overall outlook remains cautious due to volatility in the macro environment and its potential impact on the retail and industrial supply chains and GDP growth. For fiscal 2013, the company expects adjusted EBITDA to be between $123 million and $133 million.

Shares of Advance Auto Parts Inc. (NYSE: AAP), a specialty retailer of automotive aftermarket parts, accessories, batteries and maintenance items primarily operating within the U.S., are down sharply in trading today. At last check, AAP shares were trading 6.15% lower at $73.27 on above average volume of 2.51 million. The stock fell to an intra-day low of $71.36.

AAP shares fell sharply after an auction failed to attract bids that met with the company’s price expectations, according to report from Reuters. Reuters, citing people familiar with the matter, reported that as a result of the failed auction, the company is not likely to proceed with its plans to sell itself.

Shares of Tiffany & Co. (NYSE: TIF), a specialty retailer whose principal merchandise offering is jewelry, have plunged in trading today. At last check, TIF shares were trading 6.61% lower at $59.52 on above average volume of 8.41 million. The stock fell to an intra-day low of $58.18 in trading today.

TIF shares fell after the company reported its third-quarter financial results. For the quarter ended October 31, 2012, TIF reported worldwide net sales of $853 million, up 4% over the same period in the previous year. The company’s comparable store sales for the quarter rose 1%. Net earnings for the quarter fell 30% to $63 million, or $0.49 per share.

Michael J. Kowalski, Chairman and CEO of Tiffany, said that three months ago, the company anticipated that third-quarter results would be affected by continued economic weakness in many markets as well as by challenging comparisons to last year when net sales were up 21% and net earnings rose 52%, excluding non-recurring items. Kowalski further said that gross margin in the third quarter was weaker than expected and the effective tax rate was higher than expected and as a result, net earnings for the quarter fell short of expectations.

TIF also lowered its earnings outlook for the full year. The company now expects earnings for the full year to be between $3.20 per share and $3.40 per share, compared to previous forecast of $3.55-$3.70 per share.


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