GrubHub's stock drops after earnings, as DAG's were a bit shy of expectations
Shares of GrubHub Inc. dropped 1.1% in premarket trading Tuesday, after the online takeout food ordering service beat profit and sales expectations, but came up shy on daily average grubs and gross food sales. Net income rose to $30.8 million, or 34 cents a share, from $17.7 million, or 20 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 52 cents, above the FactSet consensus of 38 cents. Revenue rose to $232.6 million from $156.1 million, above the FactSet consensus of $229.2 million. Active diners rose 72% to 15.1 million, matching the FactSet consensus, while daily average grubs (DAGs) increased 35% to 436.9 thousand, which was below expectations of 442.5 thousand. Gross food sales grew 39% to $1.25 billion, below expectations of $1.26 billion. The company expects second-quarter revenue of $228 million to $236 million, compared with the FactSet consensus of $229.1 million. The stock had run up 41% year to date through Monday, while the S&P 500 had slipped 1%.