Categories Earnings, Retail

What to expect when Overstock (OSTK) reports Q3 earnings?

Overstock.com Inc. (NASDAQ: OSTK) is scheduled to report third quarter 2019 earnings results on Tuesday, November 12, before the market opens. Analysts estimate the company will report a loss of $0.62 per share on revenue of $376.2 million. This compares to a loss of $1.58 per share on revenue of $440.5 million reported a year earlier.

This will be the first earnings report after Jonathan Johnson took over as CEO in September following the departure of Patrick Byrne in August. Any new plans or strategies will be worth noting.

Overstock remains confident in its retail strategy and the company anticipates achieving sustainable growth in its retail business aided by its supply chain initiatives as well as a rise in organic traffic. The company was considering the sale of its retail business but as the division gains strength, the online retailer is likely to hold on to it. It remains to be seen how the retail business performs during the upcoming holiday season.

Also read: Overstock Q2 2019 Earnings Call Transcript

The topline numbers are likely to be impacted by higher costs in the third quarter due to tariffs. The delay in the integration of a new freight carrier has led to higher freight costs as well. Last quarter, Overstock managed to reduce its marketing expenses significantly which benefited the bottom line numbers. The rise in costs could put pressure on earnings in the third quarter.

In the second quarter of 2019, Overstock missed revenue estimates but reported a narrower-than-expected loss. Revenue fell 23% to $373.7 million while net loss amounted to $0.69 per share.

Shares of Overstock have fallen 27% year-to-date and 12% over the past one month. The stock has an average 12-month price target of $44.00.

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

HD Stock: What’s in store for Home Depot after record second quarter

Home improvement is one of the top activities that kept Americans busy during the pandemic, a trend that enabled The Home Depot, Inc. (NYSE: HD) to beat the crisis and

Target (TGT) stock drops after Q2 earnings miss estimates; revenue up 4%

Department store chain Target Corporation (NYSE: TGT) reported a sharp decline in adjusted earnings for the second quarter of 2022, despite an increase in net sales. The bottom line also fell

Amazon (AMZN) stock remains a good bet despite poor results. Here’s why

Amazon.com, Inc. (NASDAQ: AMZN) became an inspiration for other players in the eCommerce sector as the online retailer successfully channelized its resources to tap into the spike in demand for

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top