Overstock (OSTK) to Report Q3 Earnings: What's in Store?
Overstock.com OSTK is scheduled to report its third-quarter 2023 results on Oct 26.
For the underlined quarter, the Zacks Consensus Estimate for loss is pegged at 69 cents per share. The company reported earnings of 13 cents per share in the year-ago quarter.
The consensus mark for revenues, pegged at $391.87 million, implies a 14.9% decline from the year-ago reported figure.
Let’s see how things have shaped up for this announcement.
Overstock.com, Inc. Price and EPS Surprise
Overstock.com, Inc. price-eps-surprise | Overstock.com, Inc. Quote
Factors to Consider
Overstock’s third-quarter 2023 results are expected to have benefited from growing momentum in the Bed Bath & Beyond brand.
The solid adoption of the Bed Bath & Beyond brand’s strong loyalty offerings is expected to have aided the to-be-reported quarterly performance.
The bedding, bath and kitchen categories are expected to have driven momentum across the Canadian customers in the quarter under review.
The addition of Stock Keeping Units for the Bed Bath & Beyond brand is expected to have aided the company in increasing wallet share within the existing customer base, attracting new customers and capturing incremental market share in the third quarter.
Strong momentum in overall customer experience and an increase in conversion rate, owing to an improvement in internal search experience, is expected to benefit the upcoming quarterly results.
However, weakness across the Furniture and Home Furnishings industry, owing to lower consumer engagement in the category and a weak housing market, is likely to have been a major headwind.
Further, the weakening consumer sentiment, a shift in their spending priorities, and the removal of non-home products from the company’s site are likely to have hurt the third-quarter results.
Moreover, declining active customer number due to resuming of offline shopping post-pandemic is expected to get reflected in the upcoming quarterly results.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Overstock this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as elaborated below.
Overstock currently has an Earnings ESP of -2.04% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering from the same space, as our model shows that these have the right combination of elements to beat on earnings in the soon-to-be-reported quarterly results.
Beacon Roofing Supply BECN has an Earnings ESP of +7.93% and a Zacks Rank #3 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
Beacon Roofing Supply is scheduled to release its third-quarter 2023 results on Nov 2. The Zacks Consensus Estimate for BECN’s earnings is pegged at $2.54 per share, suggesting growth of 12.9% from the prior-year period’s reported figure.
Chipotle Mexican Grill CMG has an Earnings ESP of +0.19% and a Zacks Rank #3 at present
Chipotle Mexican Grill is set to report third-quarter 2023 results on Oct 26. The Zacks Consensus Estimate for CMG’s earnings is pegged at $10.48 per share, implying growth of 10.2% from the prior-year quarter’s reported figure
CVS Health CVS has an Earnings ESP of +0.98% and a Zacks Rank #3 at present.
CVS is set to report third-quarter 2023 results on Nov 1. The Zacks Consensus Estimate for CVS’s earnings is pegged at $2.13 per share, suggesting growth of 1.91% from the prior-year period’s reported figure.
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Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report
CVS Health Corporation (CVS) : Free Stock Analysis Report
Beacon Roofing Supply, Inc. (BECN) : Free Stock Analysis Report
Overstock.com, Inc. (OSTK) : Free Stock Analysis Report
