Neighborhood Intelligence Q3 revenue beats estimates on the acquisitions of Kirkland’s and The Container Store
Overview
US omni-channel retail and home services firm's Q3 revenue nearly doubled, beating analyst expectations
Q3 net loss and loss per share both beat analyst expectations
Company identified $40 mln in additional annualized cost savings and merger synergies
Outlook
Company expects 2027 revenue of $2.0 bln to $2.1 bln, with gross margin of 33%-34%
Management sees path to 37% gross margin longer-term with sourcing, assortment, and home services
Company expects full integration and synergy benefits to develop over 6-9 months
Result Drivers
ACQUISITIONS - Revenue growth was primarily driven by the acquisitions of Kirkland’s and The Container Store
E-COMMERCE PERFORMANCE - Core e-commerce revenue rose 9%, led by 75% growth at Overstock.com
COST REDUCTIONS - The company made significant progress on cost reductions and merger synergies, identifying another $40 mln in annualized savings
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $509.31 mln | $494.90 mln (5 Analysts) |
Q3 Loss Per Share | Beat | $0.28 | $0.41 (4 Analysts) |
Q3 Net Loss | Beat | $26.14 mln | $33.83 mln (3 Analysts) |
Q3 Operating Income | Miss | -$62.07 mln | -$44.15 mln (5 Analysts) |
Q3 Gross Profit | $172.95 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the department stores peer group is "buy"
Wall Street's median 12-month price target for Neighborhood Intelligence, Inc. is $7.00, about 309.4% above its November 4 closing price of $1.71
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)