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Neighborhood Intelligence Q3 revenue beats estimates on the acquisitions of Kirkland’s and The Container Store

By Reuters News


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


Reuters Recommended Reads

  • Nov 3 - Shopify Q3 revenue rises 32%, GMV hits $119 bln

  • Nov 4 - McDonald's Q3 revenue misses estimates on weaker US comparable sales

  • Nov 5 - Tapestry Q1 revenue and adjusted EPS beat estimates, outlook raised


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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