NEWEGG COMMERCE Reports Q3 Earnings: Total Revenue Down 200.5%, Net Income Down 35.4% Year-Over-Year
January 1, 2023
Earnings report
Newegg Commerce Stock Fair Value – On December 1 2022, NEWEGG COMMERCE ($NASDAQ:NEGG) reported earnings results for the third quarter of FY2022, ending September 30 2022. NEWEGG COMMERCE is one of the world’s leading online electronics and technology providers. For the third quarter, the company reported total revenue of USD -8.5 million, down 200.5% year over year. Reported net income was USD 349.2 million, down 35.4% year over year. The decrease in income can primarily be attributed to a decrease in sales due to the pandemic.
NEWEGG COMMERCE has seen some brighter news in other areas, however. Despite the decrease in revenue and net income, NEWEGG COMMERCE remains an industry leader with a bright future ahead. The company is well positioned to take advantage of new opportunities as the global economy recovers from the pandemic. With its strong customer base and expanding product offerings, NEWEGG COMMERCE is poised to continue its growth and success in the quarters ahead.
Stock Price
Despite this news, NEWEGG COMMERCE stock opened at $1.9 and closed at $1.8, up by 0.5% from previous closing price of 1.8. NEWEGG COMMERCE has been no exception, as the company has had to make significant changes in order to remain afloat and continue to serve its customers. The company has taken steps to reduce their expenses and focus their efforts on providing essential services to their customers. They have also been making investments in their online presence, including e-commerce capabilities, in order to increase their reach and provide more access to their products and services.
In addition, they have been taking advantage of new technologies such as artificial intelligence and machine learning to improve their customer experience and increase efficiency. Overall, NEWEGG COMMERCE is doing what it can to remain competitive in this difficult environment and remain profitable for its shareholders. The company has demonstrated an ability to adapt quickly to changing circumstances and continue to meet the needs of its customers. Despite the decrease in revenue and net income for this quarter, the company is still well positioned for success moving forward and is hoping that with their continued efforts they will be able to turn things around in the near future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Newegg Commerce. More…
| Total Revenues | Net Income | Net Margin |
| 1.87k | -21.14 | -1.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Newegg Commerce. More…
| Operations | Investing | Financing |
| -34.79 | -6.94 | 2.82 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Newegg Commerce. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 488.02 | 313.15 | 0.47 |
Key Ratios Snapshot
Some of the financial key ratios for Newegg Commerce are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | -1.9% |
| FCF Margin | ROE | ROA |
| -2.5% | -12.5% | -4.5% |
VI Analysis – Newegg Commerce Stock Fair Value Calculator
NEWEGG COMMERCE is a company whose fundamentals reflect its long term potential. The VI app has made it easy to analyse the company’s fundamentals and calculate its intrinsic value. According to VI Line, the intrinsic value of NEWEGG COMMERCE’s stock is around $7.4. However, currently NEWEGG COMMERCE’s stock is being traded at $1.8, which is undervalued by 76%. This means investors can buy the stock at a discounted rate and benefit from its potential returns in the future. This discrepancy between the current stock price and its intrinsic value presents a great opportunity for investors looking to make a good return on their investments. The company has the potential to generate a considerable amount of revenue in the future, making it an attractive option for those looking to invest in a company with strong fundamentals and potential growth. More…
VI Peers
The company has a strong presence in the United States, Canada, and Europe. Newegg Commerce Inc competes with ATRenew Inc, Jeffs Brands Ltd, and Hour Loop Inc in the online retail market.
– ATRenew Inc ($NYSE:RERE)
Based in Atlanta, Georgia, CATRenew Inc is a publicly traded company that provides environmental remediation services. The company’s market cap as of 2022 was 372.79M, and its ROE was -5.98%. CATRenew Inc specializes in the removal of hazardous waste from contaminated sites, and the company’s services are used by both public and private sector clients.
– Jeffs Brands Ltd ($NASDAQ:JFBR)
Jeffs Brands Ltd is a holding company that operates in the food and beverage industry. The company has a market capitalization of 12.84 million as of 2022 and a return on equity of -103.49%. The company’s primary operations are in the United Kingdom and Ireland. Jeffs Brands Ltd is a publicly traded company on the London Stock Exchange.
– Hour Loop Inc ($NASDAQ:HOUR)
Loop Inc is a company that provides software for businesses. Its market cap is $93.56 million and its ROE is 20.34%. The company offers a variety of software products, including a customer relationship management (CRM) system, an enterprise resource planning (ERP) system, and a business intelligence (BI) system. Loop Inc’s products are used by businesses of all sizes, from small businesses to large enterprises.
Summary
Investors should take note of Newegg Commerce‘s third quarter earnings results for FY2022. Total revenue was down 200.5% year over year to USD -8.5 million, while reported net income was down 35.4% year over year to USD 349.2 million. This is a significant decline in both revenue and profits for the company. Investors should consider the potential risks associated with investing in Newegg Commerce.
The company has experienced a large drop in revenue and profits, and there may be additional declines in the future. Investors should also consider the company’s competitive landscape and what steps Newegg Commerce is taking to address any weaknesses. Overall, Newegg Commerce may be a risky investment for some investors, and careful analysis should be conducted before investing in the company.
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