Groupon (GRPN) Posts Quarterly Earnings Results, Misses Expectations By $0.01 EPS

A year ago, Groupon earned $0.01 a share.

North American revenue of $481.3 million up 13.5% from $423.9 million. Macquarie raised shares of Groupon from a “neutral” rating to an “outperform” rating and cut their price objective for the company from $7.75 to $7.00 in a report on Monday, July 13th. Excluding that impact, adjusted earnings were two cents a share, up from a loss of a penny per share in last year’s quarter.

On valuation measures, Groupon Inc.’s current year and next year EPS growth estimates stand at 112.50% and 35.30% compared to the industry growth rates of 16.60% and 23.90%, respectively. Groupon last year released several new products, including a tablet-based checkout register for small businesses and a listings service that competes with Yelp Inc.

Its revenue climbed to $738.4 million from $716.2 million.

Groupon Inc (NASDAQ:GRPN) traded down 6.20% during mid-day trading on Friday, reaching $4.39. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The stock was sold at an average price of $4.83, for a total transaction of $2,415,000.00. Also, Director Bradley A. Keywell sold 500,000 shares of the business’s stock in a transaction dated Wednesday, July 8th.

Groupon Inc. swung to a rare profit in its latest quarter, thanks to a gain stemming from a recent divestiture. Morgan Stanley reiterated a “hold” rating on shares of Groupon in a research report on Thursday, July 16th. The most bullish analyst estimates earnings per share of $0.09, while the most bearish is estimating EPS of $-0.07 for the year. The disclosure for this sale can be found here. Groupon Goods generated $420.5 million in sales during the quarter, accounting for 56.9% of companywide revenue.

Groupon posted EPS of $0.03 in 1QFY15 that was in-line with the consensus estimates. Finally, Piper Jaffray reissued a buy rating on shares of Groupon in a report on Friday. On a shorter term basis, analysts have a projected price target of $8.66 on the equity. The 12-month price target is set at $22.59, which shows a 14.85% potential downside over the stock’s last closing price of $26.53.

The average broker recommendation is an arithmetical average of the individual ratings contributed by sell-side analysts to produce a Consensus Analyst Rating for each stock.

“Moving onto our strategic and operating initiatives, our mission is to connect local commerce by providing better yield management tools to merchants looking to fill their open capacity, while offering consumers a seamless experience to which they can discover, book and buy locally”. The Company’s Local category includes deals with merchants that are national, local retailers and local events. The Goods trades in North America of the Company’s are mostly direct revenue deals. Each day the Company e-mails its subscribers discounted offers for goods and services that are targeted by location and personal preferences. Its bargain offerings are obtained right through cellular applications its Websites and search engines.