Earnings To Watch: Overstock (OSTK) Reports Q1 Results Tomorrow

Adam Hejl /
2022/04/27 8:19 am EDT

Online home goods retailer Overstock (NASDAQ: OSTK) will be reporting results tomorrow morning. Here's what to look for.

Last quarter Overstock reported revenues of $612.6 million, down 10.4% year on year, missing analyst expectations by 4.86%. Despite the company trading up on the results, it was a weak quarter for the company, with declining number of users and a slow revenue growth. The company reported 8.1 million active buyers, down 11.9% year on year.

Is Overstock buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Overstock's revenue to decline 13.1% year on year to $573.2 million, a significant deceleration compared to the 94.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.23 per share.

Overstock Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing two downward revisions over the last thirty days. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 6.84%.

Looking at Overstock's peers in the consumer internet segment, only Snap has so far reported results, delivering top-line growth of 38% year on year, missing analyst estimates by 0.58%. The stock traded up 8.2% on the results. Read our full analysis of Snap's earnings results here.

The technology sell-off has been putting pressure on stocks since November and consumer internet stocks have been swept alongside with it, with share price down on average 16.1% over the last month. Overstock is down 33.3% during the same time, and is heading into the earnings with analyst price target of $103.4, compared to share price of $31.79.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.