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

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Overstock.com OSTK 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 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, Jack In The Box JACK and MercadoLibre MELI 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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MercadoLibre, Inc. (MELI) : Free Stock Analysis Report

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