Shares of e-commerce company Overstock.com (NASDAQ: OSTK) fell on Friday, declining as much as 17.9%. But the stock ended the trading day down 15.5%.
The stock's decline follows Overstock's third-quarter earnings release. The likely driver for the stock's pullback on Friday was Overstock's worse-than-expected loss per share for the period.
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Overstock reported revenue of $440.6 million, up 4% from $424.0 million in the year-ago quarter. Revenue fell short of a consensus analyst estimate, but not by much. On average, analysts were expecting Overstock to report third-quarter revenue of $440.7 million.
Overstock's net loss per share for the quarter was $1.55, wider than a loss of $0.03 in the year-ago quarter. This was a significantly larger loss than what analysts were expecting. On average, analysts expected a loss per share of $0.80 for the period.
The company's hefty loss comes as Overstock transitions away from what management calls "the 'accelerate at any cost and ignore the losses' standard Internet model" to a "rational economic agent model." As management was careful to note, this cut its pre-tax operating loss (when excluding some legal expenses) in half compared to its second quarter. Management expects "similar results" from these efforts in its fourth quarter.
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