Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Shares Spiked

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of online retail marketplace (NASDAQ: OSTK  ) advanced as much as 15% after reporting its fourth-quarter and full-year earnings results.

So what: For the quarter, reported a 9% increase in revenue to $342 million as it reversed a year-ago loss to earn $0.37 per share. Relative to the lone analyst estimate, it fell slightly short of revenue figures at $343.3 million but crushed the $0.27 EPS forecast. Gross margin for the quarter was the biggest help, improving 170 basis points to 17.9% as a better product mix and lower warehousing costs ate less into its bottom line as in year's past.

Now what: With small-cap companies, you basically have to take earnings pops and drops like these with a grain of salt relative to the one or two analysts covering the stock. Yes, surpassed the lone estimate by $0.10, but Overstock has also been trying to execute one of the longest turnarounds in history. It's like watching a big rig try to turn around in a space the size of an alley. has done a better job of managing its inventory space to reduce warehousing costs, a definite positive, but the growth in revenue came at the cost of a decrease in overall customers. I'd still consider to be a very unreliable long-term investment and won't be touching it here.

Craving more input? Start by adding to your free and personalized Watchlist so you can keep up on the latest news with the company.

One company you can trust
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2214527, ~/Articles/ArticleHandler.aspx, 9/27/2016 8:30:15 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 11 hours ago Sponsored by:
DOW 18,094.83 -166.62 -0.91%
S&P 500 2,146.10 -18.59 -0.86%
NASD 5,257.49 -48.26 -0.91%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/26/2016 4:00 PM
OSTK $15.25 Down -0.23 -1.49% CAPS Rating: *