What To Expect From Overstock.com (OSTK) In Q3 Earnings?

Overstock.com Inc. (NASDAQ:OSTK) is slated to report third-quarter 2016 results on Nov 3. It is an online retailer that sells brand-name merchandise at deep discounts. Its offerings include bed-and-bath goods, kitchenware, watches, jewelry, electronics, sporting goods and designer accessories.

Let’s see how things are shaping up for this announcement.

Factors to Consider

The company’s second-quarter revenues were up 8% year over year. It has intensified its efforts on expanding its product reach, building its customer base and strengthening its international foothold.

The company has partnered with Tmall in China, 11Street in Korea, Mercado LibreIguama in Latin America, Trade Me in New Zealand and Australia and Rakuten in the UK. Management has also indicated more partnerships in the near future. It has launched a trusted partner marketplace as part of its global expansion efforts.

However, the company’s business has been hit by changes in Google (NASDAQ:GOOGL) search algorithms and rising competition in the e-commerce sector. It has also been engaged in legal battles with several brokerage firms over stock price manipulation issues. Overstocks’ continuous efforts to reduce illegal stock manipulation and reform capital markets could boost its results in the to-be-reported quarter.

Also, management confirmed Overstock’s continued focus on improvement of customer experience as well as customer attraction and retention efforts. For this, the company is trying to bring in absolute customization and personalization of its marketing message and develop customer-friendly mobile platforms and applications.

Overstock has been a Bitcoin supporter for more than two years and has successfully leveraged the blockchain technology. The company is trying to establish relationships with major financial and capital market institutions to achieve the expected level of synergy between blockchain and cryptocurrency.

We expect customer-friendly initiatives, product and geographical expansion efforts, and reform capital markets to act as major positives for Overstock in the to-be-reported quarter.

Stocks That Warrant a Look

Ashford Hospitality Prime, Inc. (NYSE:AHP) is slated to report third-quarter earnings results on Nov 2. The company has an Earnings ESP of +9.76% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Avon Products Inc. (NYSE:AVP) with an Earnings ESP of +33.33% and a Zacks Rank #1. The company is slated to report third-quarter earnings results on Nov 3.

Glaukos Corporation (NYSE:GKOS) with an Earnings ESP of +100.0% and a Zacks Rank #1. The company is slated to report third-quarter earnings results on Nov 10.

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