Overstock (OSTK) Reports Earnings Tomorrow. What To Expect

Kayode Omotosho /
2023/10/25 8:22 am EDT

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

Last quarter Overstock reported revenues of $422.2 million, down 20.1% year on year, beating analyst revenue expectations by 3.06%. It was a weak quarter for the company, with a decline in its user base and slow revenue growth. The company reported 4.6 million active buyers, down 29.2% 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 13.9% year on year to $396.1 million, improvement on the 33.2% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.72 per share.

Overstock Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates five times over the last two years.

Looking at Overstock's peers in the consumer internet segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Teladoc delivered top-line growth of 7.99% year on year, missing analyst estimates by 0.43% and Snap reported revenues up 5.32% year on year, exceeding estimates by 7.04%. Teladoc was down 4.3% on the results, and Snap traded down 3.7

Read our full analysis of Teladoc's results here and Snap's results here.

There has been a stampede out of high valuation technology stocks and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share price declining 2.35% over the last month. Overstock is down 2.21% during the same time, and is heading into the earnings with analyst price target of $34, compared to share price of $15.95.

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.

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