3 Key Takeaways From Ritchie Bros. Auctioneers' Strong Second Quarter

Ritchie Bros. Auctioneers (NYSE: RBA) had a strong 2016, driven in large part by the surge in demand for equipment tied to the oil and gas markets. Its stock jumped 46% during the year. 2017, however, has been virtually the opposite for RBA investors: The stock has slumped 20% year to date despite the company reporting better-than-expected second-quarter results. Let's take a look at the highlights from the company's second quarter and try to find out where this roller-coaster ride could be headed next.

Investors initially walked away pleased with RBA's second quarter; RBA's revenue checked in at $166.2 million, which was higher than analysts' estimates calling for $163.4 million, per Thomson Reuters. That better-than-expected top-line result filtered down to the bottom line as well, with RBA's adjusted earnings per share checking in at $0.33, a full two pennies above analysts' estimates. The raw numbers show that RBA had a solid quarter and the market's initial response Tuesday was to push the stock roughly 10% higher before giving those gains right back the following day -- but here are some important details beyond the headline figures to be aware of.

Image source: Ritchie Bros. Auctioneers.

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Source: Fool.com