As it separates the retail and blockchain elements of its business, Overstock beat a second-quarter analyst estimate on earnings with gains up even from a quarter a year prior when COVID-19 boosted its performance.
Company net income was $309.9 million, or $1.72 from continuing operations, versus $36.4 million, or 1.11 per diluted share from continuing operations, in the year-prior quarter
Overstock beat a Zacks Investment Research analyst average estimate of 84 cents.
Net sales were $794.5 million versus $767 million in the year-previous quarter, the company stated. Operating income was $36.5 million versus $48.7 million, in the year-before period.
”In a significant quarter for the company, I am proud to report Overstock delivered both growth and profitability in the second quarter of 2021 as we lapped the start of the pandemic,” said Overstock CEO Jonathan Johnson in announcing the financial results. “Our strong and consistent results stem from foundational operational improvements in the business, a disciplined strategy, and intense focus. The furniture and home furnishings market is large and growing. We expect this market to benefit from strong and sustained demand, and to continue to migrate online over time. Overstock remains well-positioned to capture market share and sustain its profitable trajectory through the remainder of 2021 and beyond.”
In a significant quarter for the company, I am proud to report Overstock delivered both growth and profitability in the second quarter of 2021 as we lapped the start of the pandemic.
-Jonathan Johnson, Overstock CEO
Johnson added, “In addition to our solid operating results, Overstock recorded two significant accounting items in the second quarter. First, based on our consistent profitability and current go-forward outlook, we have released $47 million of our tax valuation allowance. This release illustrates confidence in our ability to continue to deliver sustainable, profitable market share growth. Second, in conjunction with the closing of the transaction with Pelion Venture Partners, we recognized a $228 million net gain, included in discontinued operations. It is great to have the Pelion transaction closed and the Pelion team focused on the Medici Ventures Fund companies.”
On April 23, Overstock entered into a Limited Partnership Agreement with Pelion MV GP, in which Pelion became the sole general partner, holding a 1% equity interest in the partnership, and Overstock became a limited partner, holding a 99% equity interest. Medici Ventures’ blockchain businesses, including the tZERO operation, met the criteria for reporting as held for sale and discontinued operations as of March 31, due to anticipated deconsolidation. Medici Ventures was converted into a limited partnership managed by Pelion, which will act as the fund’s general partner. Overstock is the sole limited partner of the fund.