elgato
Joined: 24 Feb 2005
Posts: 17240
Location: Texas
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| Posted: Fri Oct 29, 2010 5:22 pm Post subject: Overstock Slides On Weak Q3 |
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Overstock.com (OSTK) shares are trading sharply lower after the company disclosed its Q3 financial results in a 10-Q filing with the SEC. The online retailer appear not to have issued a press release on the results.
For the quarter, OSTK posted revenue of $245.4 million, a bit ahead of the Street at $244.5 million. But it also posted a loss of 15 cents a share, worse than the Street consensus forecast for a loss of 3 cents a share. One obvious issue in the quarter: shrinking gross margins. The company’s gross margin in the quarter was 16.9%, down from 18.0% in Q2, and 19.3% in the year ago quarter.
On the news, Feltl & Co. analyst Brent Rystrom cut his rating on the stock to Hold from Buy, with a new target of $15, from $25.25. “OSTK’s biggest variation from our model was [gross margins], which were 16.9%,” he notes. “OSTK has said it planned to aggressively price its product to drive sales, but sales below our assumptions on these discounts suggests something else may be faltering here.”
Rystrom notes that the company will hold a conference call with investors on the results next Wednesday.
OSTK today is down $2.37, or 14.9%, to $13.50.
more.. link to news article |
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