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Overstock.com's (OSTK) Q2 Earnings Beat, Revenues Fall Y/Y
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Overstock.com reported second-quarter 2023 loss of 2 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 9 cents per share. It was also narrower than the year-ago loss by 110.5%.
Revenues of $422.2 million decreased 20.1% year over year. However, the top line beat the consensus mark by 3.77%.
Revenues were hit by contraction in demand in the real estate sector. The combination of lower consumer engagement and a weak housing market created constant pressure on the top line in the reported quarter.
Active customers reached 4.621 million at the end of the second quarter of 2023, down 28.8% year over year.
The number of active customers declined due to a fall in home related spending, change in spending preference and the company’s strategy to shift completely online.
The average order value was $234 in the reported quarter, declining 5.3% year over year. Orders delivered were 1.803 million, down 15.7% year over year.
Overstock.com, Inc. Price, Consensus and EPS Surprise
Gross margin contracted 60 basis points (bps) to 22.4% in the reported quarter.
Sales & marketing (S&M) expenses decreased 15% year over year to $49.2 million. As a percentage of revenues, S&M expenses increased 70 bps to 11.7%.
Technology expenses were $27.7 million, down 9.3% year over year. As a percentage of revenues, technology expenses jumped 80 bps on a year-over-year basis to 6.6%.
General & administrative (G&A) expenses decreased 2.8% year over year to $21.7 million. As a percentage of revenues, G&A increased 110 bps to 5.1%.
Adjusted EBITDA was $8.2 million, which declined 60.3% from the year-ago quarter.
Operating loss was $4.2 million against $11.5 million profit reported in the year-ago quarter.
Balance Sheet
As of Jun 30, 2023, OSTK had cash and cash equivalents worth $342.8 million compared with $374.7 million as of Mar 31, 2023.
Long-term debt, as of Jun 30, 2023, was $34.219 million compared with $34.207 million as of Mar 31, 2023.
Zacks Rank & Stocks to Consider
Overstock.com currently carries a Zacks Rank #3 (Hold).
Chuy’s, Denny’s and Jack In The Box are scheduled to report the quarterly results on Aug 3, Aug 1 and Aug 9, respectively.
The Zacks Consensus Estimate for CHUY’s second-quarter 2023 earnings is pegged at 53 cents per share, which has remained unchanged over the past 30 days.
The Zacks Consensus Estimate for DENN’s second-quarter 2023 earnings is pegged at 17 cents per share, which has remained steady over the past 30 days.
The Zacks Consensus Estimate for JACK’s second-quarter 2023 earnings is pegged at $1.33 per share, which has remained unchanged over the past 30 days.
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Overstock.com's (OSTK) Q2 Earnings Beat, Revenues Fall Y/Y
Overstock.com reported second-quarter 2023 loss of 2 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 9 cents per share. It was also narrower than the year-ago loss by 110.5%.
Revenues of $422.2 million decreased 20.1% year over year. However, the top line beat the consensus mark by 3.77%.
Revenues were hit by contraction in demand in the real estate sector. The combination of lower consumer engagement and a weak housing market created constant pressure on the top line in the reported quarter.
Active customers reached 4.621 million at the end of the second quarter of 2023, down 28.8% year over year.
The number of active customers declined due to a fall in home related spending, change in spending preference and the company’s strategy to shift completely online.
The average order value was $234 in the reported quarter, declining 5.3% year over year. Orders delivered were 1.803 million, down 15.7% 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 contracted 60 basis points (bps) to 22.4% in the reported quarter.
Sales & marketing (S&M) expenses decreased 15% year over year to $49.2 million. As a percentage of revenues, S&M expenses increased 70 bps to 11.7%.
Technology expenses were $27.7 million, down 9.3% year over year. As a percentage of revenues, technology expenses jumped 80 bps on a year-over-year basis to 6.6%.
General & administrative (G&A) expenses decreased 2.8% year over year to $21.7 million. As a percentage of revenues, G&A increased 110 bps to 5.1%.
Adjusted EBITDA was $8.2 million, which declined 60.3% from the year-ago quarter.
Operating loss was $4.2 million against $11.5 million profit reported in the year-ago quarter.
Balance Sheet
As of Jun 30, 2023, OSTK had cash and cash equivalents worth $342.8 million compared with $374.7 million as of Mar 31, 2023.
Long-term debt, as of Jun 30, 2023, was $34.219 million compared with $34.207 million as of Mar 31, 2023.
Zacks Rank & Stocks to Consider
Overstock.com currently carries a Zacks Rank #3 (Hold).
Investors interested in the broader Zacks Retail-wholesale sector can also consider some better-ranked stocks like Chuy’s (CHUY - Free Report) , Denny’s (DENN - Free Report) , carrying a Zacks Rank #2 (Buy) and Jack In The Box (JACK - Free Report) , sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Chuy’s, Denny’s and Jack In The Box are scheduled to report the quarterly results on Aug 3, Aug 1 and Aug 9, respectively.
The Zacks Consensus Estimate for CHUY’s second-quarter 2023 earnings is pegged at 53 cents per share, which has remained unchanged over the past 30 days.
The Zacks Consensus Estimate for DENN’s second-quarter 2023 earnings is pegged at 17 cents per share, which has remained steady over the past 30 days.
The Zacks Consensus Estimate for JACK’s second-quarter 2023 earnings is pegged at $1.33 per share, which has remained unchanged over the past 30 days.