A month has gone by since the last earnings report for Overstock.com . Shares have lost about 6.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Overstock due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Overstock.com Q4 Earnings Beat Mark, Revenues Down Y/Y
Overstock.com reported fourth-quarter 2021 adjusted earnings of 36 cents per share, which beat the Zacks Consensus Estimate by 12.50% but were down 25% from the year-ago quarter.
Revenues of $612.7 million decreased 8.5% year over year. The top line also lagged the consensus mark by 5.6%.
Top-Line Details
Active customers reached 8.1 million at the end of fourth-quarter 2021, down 12% year over year.
Orders placed through a mobile device were 50.7% of gross merchandise sales in the fourth quarter.
Average order value was $206 in the quarter, reflecting an increase of 23% year over year. However, total orders delivered in the quarter were three million, representing a decrease of 25%.
Operating Details
Gross margin expanded 20 basis points (bps) to 22.7% in the reported quarter.
Sales & marketing (S&M) expenses decreased 8% year over year to $68 million. As a percentage of revenues, S&M expenses expanded 10 bps to 11.1%.
Technology expenses were $30.9 million, up 3.2% year over year. As a percentage of revenues, technology expenses jumped 60 bps on a year-over-year basis.
General & administrative (G&A) expenses decreased 14.4% year over year to $20.8 million. As a percentage of revenues, G&A decreased 20 bps to 3.4%.
Adjusted EBITDA was $27.3 million, which declined 8.6% from the year-ago quarter.
Operating income was $19.1 million compared with $22.4 million a year ago.
Balance Sheet
As of Dec 31, 2021, Overstock.com had cash and cash equivalents worth $503.3 million.
Long-term debt, as of Dec 31, 2021, was $38 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
The consensus estimate has shifted -13.58% due to these changes.
VGM Scores
At this time, Overstock has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Overstock has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Image: Bigstock
Overstock (OSTK) Down 6.9% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Overstock.com . Shares have lost about 6.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Overstock due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Overstock.com Q4 Earnings Beat Mark, Revenues Down Y/Y
Overstock.com reported fourth-quarter 2021 adjusted earnings of 36 cents per share, which beat the Zacks Consensus Estimate by 12.50% but were down 25% from the year-ago quarter.
Revenues of $612.7 million decreased 8.5% year over year. The top line also lagged the consensus mark by 5.6%.
Top-Line Details
Active customers reached 8.1 million at the end of fourth-quarter 2021, down 12% year over year.
Orders placed through a mobile device were 50.7% of gross merchandise sales in the fourth quarter.
Average order value was $206 in the quarter, reflecting an increase of 23% year over year. However, total orders delivered in the quarter were three million, representing a decrease of 25%.
Operating Details
Gross margin expanded 20 basis points (bps) to 22.7% in the reported quarter.
Sales & marketing (S&M) expenses decreased 8% year over year to $68 million. As a percentage of revenues, S&M expenses expanded 10 bps to 11.1%.
Technology expenses were $30.9 million, up 3.2% year over year. As a percentage of revenues, technology expenses jumped 60 bps on a year-over-year basis.
General & administrative (G&A) expenses decreased 14.4% year over year to $20.8 million. As a percentage of revenues, G&A decreased 20 bps to 3.4%.
Adjusted EBITDA was $27.3 million, which declined 8.6% from the year-ago quarter.
Operating income was $19.1 million compared with $22.4 million a year ago.
Balance Sheet
As of Dec 31, 2021, Overstock.com had cash and cash equivalents worth $503.3 million.
Long-term debt, as of Dec 31, 2021, was $38 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
The consensus estimate has shifted -13.58% due to these changes.
VGM Scores
At this time, Overstock has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Overstock has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.