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Shares of Groupon Inc. shot up 13% in premarket trade Wednesday, after the provider of online coupons reported a surprise adjusted profit and revenue that fell less than expected. The net loss widened to $6.9 million, or 1 cent a share, from $24.4 million, or 4 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 3 cents, while the FactSet consensus was for a breakeven quarter. Revenue fell 7% to $626.5 million, but was above the FactSet consensus of $604.2 million. Total gross billings declined 4.8% to $1.29 billion, but beat the FactSet consensus of $1.28 billion. The company raised its 2018 guidance range for adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) to $280 million to $290 million from $260 million to $270 million. Separately, Groupon announced a new $300 million share repurchase program, to replace the recently expired program. The stock had shed 5.1% year to date through Tuesday, while the S&P 500 had eased 0.1%.
Groupon sets new $300 mln stock buyback program
Groupon's stock rockets 16% premarket after Q1 results
Groupon raises 2018 adj. EBITDA outlook to $280 mln-$290 mln from $260 mln-$270 mln
Groupon Q1 revenue $626.5 mln vs. $673.6 mln a year ago; FactSet consensus $604.2 mln
Groupon Q1 adj. EPS 3 cents; FactSet consensus was breakeven
Groupon Q1 per-share net loss 1 cent vs. loss 4 cents a year ago
Shares of Groupon Inc. are up 5.2% in midday trading Monday after analysts at Morgan Stanley upgraded the stock to equal-weight from underweight. The analysts, led by Jonathan Lanterman, believe that the post-earnings selloff has been overdone, with shares down 14% since the company reported an earnings miss in mid-February. The company also issued disappointing guidance at the time. "We acknowledge that 2018 could see gross billings and revenue growth metrics look unappealing with success of Groupon+ and the shift to [third-party] goods, but the company focuses on gross profit growth as a better indicator of the health of the business and we agree," Lanterman wrote. He raised his price target on shares to $4.40 from $4.30. Groupon shares are up 12% in the past 12 months, while the S&P 500 Index has gained 14%.
Groupon upgraded to equal weight at Morgan Stanley
Groupon Inc. shares sank 4.8% in Wednesday premarket trading after the company reported a fourth-quarter earnings miss. Net income totaled $47.7 million, or 8 cents per share, compared with a loss of $52.6 million or 9 cents per share, year-over-year. Adjusted EPS was 7 cents. Revenue totaled $873.2 million, down from $904.9 million last year. The FactSet consensus was for EPS of 9 cents and sales of $853.0 million. North America added 200,000 new active customers, bringing the total to 32.7 million as of Dec. 31, 2017. Active customers have made at least one purchase through one or more marketplaces or with a merchant in the last 12 months. International active customers also rose 200,000 to 16.8 million. For the full year Groupon expects adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of between $260 million and $270 million. FactSet consensus is $277 million. Groupon shares are up 37.6% for the last 12 months while the S&P 500 index is up 14% for the period.
Groupon's stock falls 4.8% premarket after Q4 results
Groupon sees 2018 adj. EBITDA $260 mln-$270 mln; FactSet consensus $277 mln
Groupon Q4 gross billings down 2% to $1.58 bln
Groupon Q4 revenue $873.2 mln vs. $904.9 mln; FactSet consensus $853.1 mln
It initiated positions in Qualcomm, Groupon and Snyders-Lance in Q4 and bought more Time Warner.
One of Groupon’s best chances for growth could come from a service that lets consumers save without waving coupons around.
Investors in Groupon (GRPN) need to pay close attention to the stock based on moves in the options market lately.
Premarket Gainers as of 9:05 am (05/09/2018)
Groupon (GRPN) closed 2017 with $135.2 million shares remaining under its current share repurchase program.
In a shareholder update this year, Amazon (AMZN) said that its Brazilian arm was continuing to expand, especially in its third-party Marketplace division.
Groupon (GRPN) generated investor returns of 6.2% in the trailing-one-month period and 16.7% in the trailing-12-month period.
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In recent years, Groupon (GRPN) has prioritized improving profitability over driving revenue growth.
Groupon is scheduled to report its 1Q18 earnings results less than two months after its partner GrubHub completed a platform integration with Yelp.
Yelp (YELP) was trading ~5.5% above its 100-day moving average on May 2.
Groupon (GRPN) is gearing up to report its 1Q18 financial results after recently striking a deal that could stimulate growth in its Travel business.
Groupon adds American Express as Plus partner; shares +4.4%
Groupon's (GRPN) first-quarter results are likely to gain from expanding partner network. However, transition to local services market is likely to keep top-line under pressure.
24/7 Wall St. has put together a preview of Disney, Nvidia, Valeant Pharmaceuticals and of some of the other top companies reporting their latest results in the coming week.
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Groupon, Inc. engages in the operation of online local commerce marketplace that connects merchants to consumers by offering goods and services at a discount. It operates through the following business segments: North America, EMEA, and Rest of World. The North America segment comprises of the United States and Canada. The EMEA segment covers Europe, the Middle East, and Africa. The Rest of World segment involves international operations. It offers goods and services under the Local Deals, Groupon Goods, and Groupon Getaways categories. The company was founded by Andrew D. Mason, Eric Paul Lefkofsky, and Bradley A. Keywell on January 15, 2008 and is headquartered in Chicago, IL. (See Full Profile)
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