Heritage Global Inc Down 3.00% To $2.91 After Earnings Beat

Friday, March 15, 2024 - Heritage Global Inc (HGBL) reported upside earnings and downside revenues.

The consensus among analysts for Heritage Global Inc was for an earnings per share (EPS) of $0.07. The firm was able to surpass those projections, reporting an EPS of $0.13, a positive surprise of $0.06 (86%). Profits fell 52% year-over-year after reporting an EPS of $0.27 in its year-ago quarter. The negative growth rate signals that the Financial Services company isn't performing well amid current economic conditions.

Consensus estimates for Heritage Global Inc revenue averaged out to $15.4 million, with the business missing on those expectations with reported fourth-quarter revenue of $15.3 million. The $66 thousand (0%) negative revenue surprise led to 11% growth year-over-year as the firm reported revenue of $13.8 million in its year-ago quarter. The lower earnings growth compared to revenue points to Heritage Global Inc not being able to improve its profit margin.

The stock is down 3.00% to $2.91 after the report.

Despite revenues increasing, earnings decreased, signaling a decline in profit margins.

The average recommendation from Wall Street analysts was a Strong Buy which may get revised based on this new data.

Trading in the five days leading up to the report earned Heritage Global Inc a Bullish Sentiment Rank from InvestorsObserver.

Heritage Global Inc has performed poorly during the past few months, garnering a low Long-Term Technical Rank by InvestorsObserver of 23, putting Heritage Global Inc in the bottom 25% of stocks. The firm set a 52-week low on December 13, 2023 at $2.33 and set a 52-week high on July 17, 2023 at $4.08.

Heritage Global Inc is a diversified financial services company. The firm provides acquisition, disposition, valuation, and lending services for surplus and distressed assets. It specializes in acting as an adviser, as well as acquiring or brokering turnkey manufacturing facilities, surplus industrial machinery and equipment, industrial inventories, real estate, accounts receivable portfolios, and intellectual property.