As you might know, Overstock.com, Inc. (NASDAQ:OSTK) recently reported its third-quarter numbers. Revenues were in line with expectations, at US$373m, while statutory losses ballooned to US$1.39 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Overstock.com

Following last week's earnings report, Overstock.com's nine analysts are forecasting 2024 revenues to be US$1.56b, approximately in line with the last 12 months. Losses are expected to be contained, narrowing 15% from last year to US$3.05. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$1.68b and losses of US$2.53 per share in 2024. So it's pretty clear the analysts have mixed opinions on Overstock.com after this update; revenues were downgraded and per-share losses expected to increase.

The consensus price target fell 38% to US$22.50, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Overstock.com, with the most bullish analyst valuing it at US$41.00 and the most bearish at US$16.00 per share. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.3% by the end of 2024. This indicates a significant reduction from annual growth of 4.0% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.8% per year. It's pretty clear that Overstock.com's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Overstock.com. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Overstock.com's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Overstock.com going out to 2025, and you can see them free on our platform here.

You still need to take note of risks, for example - Overstock.com has 2 warning signs we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.