Heritage Global Q2 adjusted EBITDA beats estimates

Reuters08-08
Heritage Global <a href="https://laohu8.com/S/QTWO">Q2</a> adjusted EBITDA beats estimates

Overview

  • Heritage Global Q2 operating income drops to $2.2 mln from $3.5 mln

  • Net income for Q2 declines to $1.6 mln from $2.5 mln

  • Adjusted EBITDA beats estimates at $2.6 mln, per LSEG data

Outlook

  • Company to continue strategic M&A evaluations in 2025

Result Drivers

  • AUCTION ACTIVITY - Healthy volume of auction activity and robust asset pricing levels supported results, per CEO Ross Dove

  • FINANCIAL SEGMENT - Operating income in the financial segment increased sequentially, driven by quality portfolio additions in the brokerage business

  • SHARE REPURCHASES - Strong cash position enabled repurchase of 744,424 shares, supporting share buyback program

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 EPS

$0.05

Q2 Net Income

$1.64 mln

Q2 Adjusted EBITDA

Beat

$2.58 mln

$2.42 mln (4 Analysts)

Q2 Basic EPS

$0.05

Q2 Operating Income

$2.23 mln

Q2 Pretax Profit

$2.25 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the investment management & fund operators peer group is "buy"

  • Wall Street's median 12-month price target for Heritage Global Inc is $3.60, about 39.4% above its August 6 closing price of $2.18

  • The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nBw7n93pqa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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