Overstock 3Q19 Review: Weak earnings and SEC subpoena sends shares tumbling 17%

Following the widely publicized departure of its CEO and CFO, Overstock posted disappointing 3Q19 results on all fronts. The company missed the Street estimates on both the top and bottom-line as retail sales and progress on tZERO’s security token buildout were less than expected. The reveal of an ATM offering and a subpoena from the SEC added to shareholder frustration, leading to a 17% pullback in the stock Tuesday.

Even with the company lowering its 3Q19 guidance in late September (near the end of the quarter), its financial results came in below expectations. Reported revenues were $347 million, a 21% year-over-year decrease from last year’s $441 million, and below the Street estimate of $376 million.