Overstock To Report Earnings Tomorrow: Here Is What To Expect

Kayode Omotosho /
2022/02/22 6:27 am EST
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Online home goods retailer Overstock (NASDAQ: OSTK) will be reporting results tomorrow before the bell. Here's what investors should know.

Last quarter Overstock reported revenues of $689.3 million, down 5.78% year on year, in line with analyst expectations. It was a weaker quarter for the company, with a slow revenue growth. The company reported 8.7 million active buyers, up 6.09% 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 5.85% year on year to $643.9 million, a deceleration on the 84.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.26 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 5 downward revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 7.94%.

Looking at Overstock's peers in the consumer internet segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. Angi (NASDAQ:ANGI) delivered top-line growth of 15.7% year on year, beating analyst estimates by 0.12%. Angi traded down 9.9% on results. Read our full analysis of Angi's results here.

The whole tech sector has been facing a sell-off since late last year and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share price declining 7.04% over the last month. Overstock is down 8.62% during the same time, and is heading into the earnings with analyst price target of $122.5, compared to share price of $39.4.

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.