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Overstock.com (OSTK) Q1 Earnings Miss Mark, Revenues Down Y/Y

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Overstock.com reported first-quarter 2022 earnings of 21 cents per share, which lagged the Zacks Consensus Estimate by 12.50% and were down 63.2% from the year-ago quarter.

Revenues of $536 million decreased 18.8% year over year. The top line also lagged the consensus mark by 5.99%.

Active customers reached 7.39 million at the end of first-quarter 2022, down 25.7% year over year.

Orders placed through a mobile device were 50% of gross merchandise sales in the first quarter.
 

Overstock.com, Inc. Price, Consensus and EPS Surprise

Overstock.com, Inc. Price, Consensus and EPS Surprise

Overstock.com, Inc. price-consensus-eps-surprise-chart | Overstock.com, Inc. Quote

 

Average order value was $221 in the quarter, increasing of 20.8% year over year. However, orders delivered were 2.428 million, down 32.7% year over year.

Operating Details

Gross margin expanded 10 basis points (bps) to 23.4% in the reported quarter.

Sales & marketing (S&M) expenses decreased 20.4% year over year to $58.5 million. As a percentage of revenues, S&M expenses declined 20 bps to 10.9%.

Technology expenses were $33 million, up 8.1% year over year. As a percentage of revenues, technology expenses jumped 150 bps on a year-over-year basis to 6.2%.

General & administrative (G&A) expenses decreased 7.1% year over year to $21.3 million. As a percentage of revenues, G&A increased 50 bps to 4%.

Adjusted EBITDA was $21.5 million, which declined 36.6% from the year-ago quarter.

Operating income was $12.5 million compared with $26.6 million reported in the year-ago quarter.

Balance Sheet

As of Mar 31, 2022, Overstock.com had cash and cash equivalents worth $493.5 million compared with $503.3 million as of Dec 31, 2021.

Long-term debt, as of Mar 31, 2022, was $37.1 million compared with $38 million as of Dec 31, 2021.

During the three months ended Mar 31, 2022, Overstock.com repurchased $24.9 million of its common stock and $256,000 of its Series A-1 preferred stock under the Repurchase Program at an average price of $48.18 and $45.24 per share, respectively.

As of Mar 31, 2022, Overstock.com had approximately $74.8 million remaining under the current repurchase  authorization.

Zacks Rank & Stocks to Consider

Overstock.com currently carries a Zacks Rank #5 (Strong Sell).

Builders FirstSource (BLDR - Free Report) , Jack In The Box (JACK - Free Report) and MercadoLibre (MELI - Free Report) are some better-ranked stocks in the broader Retail-wholesale sector.

While Builders FirstSource sports a Zacks Rank #1 (Strong Buy), both Jack In The Box and MercadoLibre carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Builders FirstSource is set to report its first-quarter 2022 results on May 10.

The BLDR stock has declined 25.4% year to date.

Jack In The Box is set to report its second-quarter fiscal 2022 results on May 26.

The JACK stock has declined 3.1% year to date.

MercadoLibre is scheduled to report first-quarter 2022 results on May 5.

MELI stock has declined 22.9% year to date.

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