Yahoo Finance Overstock.com's (OSTK) Q3 Earnings Beat, Revenues Down Y/Y
Overstock.com OSTK reported third-quarter 2022 earnings of 13 cents per share, which beat the Zacks Consensus Estimate by 8.33% but declined 75.9% year over year.
Revenues of $460.3 million decreased 33.2% year over year. The top line lagged the consensus mark by 6.3%.
The revenues were hit by macroeconomic factors like rising interest rates, recession fears, supply chain disruptions and geopolitical tensions. The decline in demand in the Real Estate sector also served as a headwind for Overstock as consumers had reduced spending on home and home appliances in the reported quarter.
Active customers reached 5.791 million at the end of the third quarter of 2022, down 33.1% year over year.
As the Covid-19 restrictions have relaxed, customers have switched to their offline shopping behavior, which has caused a decline in Overstock’s customer base.
The average order value was $243 in the reported quarter, increasing 13.6% year over year. However, orders delivered were 1.894 million, down 41.1% year over year.
Overstock.com, Inc. Price, Consensus and EPS Surprise
Overstock.com, Inc. price-consensus-eps-surprise-chart | Overstock.com, Inc. Quote
Operating Details
Gross margin expanded 60 basis points (bps) to 23.3% in the reported quarter.
Sales & marketing (S&M) expenses decreased 29.3% year over year to $53.5 million. As a percentage of revenues, S&M expenses increased 70 bps to 11.6%.
Technology expenses were $29.6 million, down 5% year over year. As a percentage of revenues, technology expenses jumped 190 bps on a year-over-year basis to 6.4%.
General & administrative (G&A) expenses decreased 11.3% year over year to $18.7 million. As a percentage of revenues, G&A increased 100 bps to 4.1%.
Adjusted EBITDA was $14.8 million, which declined 59.1% from the year-ago quarter.
Operating income was $5.7 million compared with $28.8 million reported in the year-ago quarter.
Balance Sheet
As of Sep 30, 2022, Overstock had cash and cash equivalents worth $427.530 million compared with $503.341 million as of June 30, 2022.
Long-term debt, as of Sep 30, 2022, was $35.369 million compared with $37.984 million as of June 30, 2022.
During the three months that ended Sep 30, Overstock repurchased $60.77 million of its common stock.
As of Sep 30, 2022, Overstock had approximately $40 million remaining under the current repurchase authorization.
Zacks Rank & Stocks to Consider
Overstock.com currently carries a Zacks Rank #4 (Sell).
TravelCenters of America TA, Potbelly PBPB and Insight Enterprises NSIT are some better-ranked stocks in the broader Retail-wholesale sector. All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
TravelCenters of America is set to report its third-quarter 2022 results on Nov 1.
Shares of the company have improved 22.2% year to date.
Potbelly is set to report its third-quarter fiscal 2022 results on Nov 3.
Shares of the company have declined 12.7% year to date.
Portillo is scheduled to report its third-quarter 2022 results on Nov 3.
Shares of the company have declined 12.3% year to date.
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