Overstock.com (NASDAQ:OSTK) is seeing a stock surge in its pre-market trading. The controversial online discount retailer posted a narrower than expected loss of $4.7 million on a 3% rise in revenues to $161.9 million. The loss per share was -$0.20 EPS. First Call had consensus estimates of -$0.39 EPS on revenues of $155.1 million.
On an operating cash flow basis, Overstock posted a $5.9 million positive cash flow, and that is critical since that was a Q3 number rather than just a Q4 holiday quarter. On an EBITDA basis, the company posted a positive $4.1 million.
The big upside on revenues compared to estimates combined with lower sales marketing costs (down 49%) appear to have paid off. The stock is trading up over 14% to $34.00, well above the $13.40 lows of the last year and just under the $35.96 52-week high. At the end of September, the NASDAQ short interest in Overstock was listed as 4.611 million shares, about 15.5 days to cover.
Jon C. Ogg
October 19, 2007