Overview

* Heritage Global ( HGBL ) 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/Mis Actual Consensu

s s

Estimate

Q3 EPS $0.02

Q3 Net $585,000

Income

Q3 Miss $1.63 $2.48

Adjusted mln mln (4

EBITDA Analysts

)

Q3 Basic $0.02

EPS

Q3 $1.30

Operatin mln

g Income

Q3 $1.34

Pretax mln

Profit

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 ( HGBL ) 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:

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(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.)