Overstock (OSTK) Reports Q2: Everything You Need To Know Ahead Of Earnings

Kayode Omotosho /
2022/07/27 4:45 am EDT
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Online home goods retailer Overstock (NASDAQ: OSTK) will be reporting results tomorrow before the bell. Here's what to expect.

Last quarter Overstock reported revenues of $536 million, down 18.7% year on year, missing analyst expectations by 6.49%. It was a weak quarter for the company, with declining number of users and a slow revenue growth. The company reported 7.4 million active buyers, down 25.2% 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 24.3% year on year to $600.7 million, a further deceleration on the 3.59% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.42 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 missed Wall St's revenue estimates three times over the last two years.

Looking at Overstock's peers in the consumer internet segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Twitter's revenues decreased 1.15% year on year, missing analyst estimates by 11.9% and Snap reported revenues up 13.1% year on year, missing analyst estimates by 2.07%. Twitter traded down 3.88% on the results, and Snap was down 23.7%. Read our full analysis of Twitter'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 12.3% over the last month. Overstock is down 17.4% during the same time, and is heading into the earnings with analyst price target of $68.4, compared to share price of $28.

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.