Bloomberg the Company

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Follow Us

Industry Products

Markets & Finance

Piper Jaffray Downgrades Overstock.com


Piper Jaffray downgraded Overstock.com (OSTK) to market perform from outperform.

Analyst Aaron Kessler says growth appears to be slowing due to more pronounced seasonality. He cut his $150 million second-quarter revenue estimate to $140 million, vs. the consensus estimate of $148 million; he now sees 24 cents second-quarter loss per share, vs. previous estimate of a 21-cents loss.

Kessler believes second half estimates may be too high as well; he notes Overstock.com recently reinitiated its $1 shipping promotion, which he thinks could indicate third-quarter sales are off to a slow start. He also notes that Overstock.com's continued IT investments could further pressure margins in 2005.

He cut his EPS estimates from 52 cents for 2006 to 42 cents, and $1.45 for 2007 to $1.30. He reduced his $48 target price to $39.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus