Oppenheimer Has Perform Rating On Ritchie Bros. Auctioneers (RBA)

Oppenheimer & Co. has a Perform rating on shares of Ritchie Bros. Auctioneers RBA after it reported earnings. In a note to clients, Oppenheimer writes, Oppenheimer writes, "4Q10 EPS of $0.13 (-37% y/y) was below our estimate/consensus of $0.15 capping a tough year. 4Q10 GAP of $799M and auction revenue of $88M were below our estimates of $878M/$95M, respectively. More upbeat, RBA cited signs of market improvement in 2011, as OEM production is increasing, late model + dated equipment are garnering improved pricing, and owners/sellers are more optimistic. YTD 2011 auctions (e.g. Orlando) have been successful and consignment volume appears to be improving. 2011 GAP and auction revenue guidance both bookended our estimates/consensus with 2H11 contribution from RBA's new fee structure lending support. At 31x our 2012E EPS of $0.84, we appreciate RBA's potential, though maintain our Perform rating as we await demonstrated GAP reinvigoration." Shares of RBA lost 59 cents yesterday to close at $25.84, a loss of 2.2%.