Asset services firm Heritage Global Q3 adjusted EBITDA misses estimates

Reuters11-07
Asset services firm Heritage Global Q3 adjusted EBITDA misses estimates

Overview

  • Heritage Global Q3 net income falls to $0.6 mln from $1.1 mln yr/yr

  • Adjusted EBITDA for Q3 misses analyst expectations

  • Company's auction sizes smaller due to economic uncertainty

Outlook

  • Company is preparing for M&A as a key growth component

Result Drivers

  • SMALLER AUCTIONS - Co conducted smaller auctions as clients adopted a 'wait and see' approach due to economic uncertainty

  • SEGMENT PROFITABILITY - Co maintained strong profitability in industrial and financial asset segments, per CEO Ross Dove

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 EPS

$0.02

Q3 Net Income

$585,000

Q3 Adjusted EBITDA

Miss

$1.63 mln

$2.48 mln (4 Analysts)

Q3 Basic EPS

$0.02

Q3 Operating Income

$1.30 mln

Q3 Pretax Profit

$1.34 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 $3.20, about 54.4% above its November 5 closing price of $1.46

  • The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nBw1091L0a

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(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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