What To Expect From Overstock’s (OSTK) Q1 Earnings

Petr Huřťák /
2023/04/26 3:51 am EDT
Add to Watchlist

Online home goods retailer Overstock (NASDAQ: OSTK) will be announcing earnings results tomorrow before market open. Here's what investors should know.

Last quarter Overstock reported revenues of $404.9 million, down 33.9% year on year, missing analyst expectations by 9.75%. It was a weak quarter for the company, with declining number of users and slow revenue growth. The company reported 5.2 million active buyers, down 35.8% 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 33.3% year on year to $357.6 million, a further deceleration on the 18.8% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.14 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 three downward revisions over the last thirty days. 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 Q1 earnings results, giving us a hint of what we can expect. Shutterstock delivered top-line growth of 8.11% year on year, beating analyst estimates by 1.77% and Skillz reported revenue decline of 56.9% year on year, missing analyst estimates by 3.79%. Skillz was down 4.06%, and Shutterstock traded flat on the results. Read our full analysis of Shutterstock's results here and Skillz's results here.

Investors in the consumer internet segment have had steady hands going into the earnings, with the stocks up on average 0.11% over the last month. Overstock is down 7.11% during the same time, and is heading into the earnings with analyst price target of $32.8, compared to share price of $18.15.

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.