This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Groupon Earnings Preview: What Wall Street's Saying

Stocks in this article: GRPN AMZN

Sterne Agee analyst Arvind Bhatia (Buy, $12 PT)

"We believe GRPN will report 2Q results in line with expectations. Investors will be looking for signs of improvement on three key metrics-revenue growth in Local, improvement in Goods gross margins and, progress in international operations. We recommend shares of GRPN for longer term investors for the following reasons: 1) GRPN's large addressable market; 2) the potential for turnaround as execution improves and; 3) attractive valuation (2x 2015E revenue vs. peer group at 7x)."

Piper Jaffray analyst Gene Munster (Overweight, $16 PT)

"We remain positive on shares of GRPN. Groupon reports earnings on Tuesday (8/5) and we expect June revenue inline with the Street, likely driven by the goods business with earnings a wild card given that gross margin is heavily influenced by the goods/deals mix. Based on our tracking of listings (local deals), we believe local deal growth started slow in the June quarter and has accelerated into our most recent reading, which was August 4. Our tracking of goods is limited at this time. Given investors have been through the goods-to-deals mix fire-drill in the past, we believe if there is margin disappointment the impact to shares of GRPN would be minimal. As for guidance, we expect the company to reiterate the long term deals marketplace goal, with fluctuations in profitability driven by a the mix of goods and local deals."

Ascendiant Capital analyst Edward Woo (Sell, $5 PT)

"We expect Q2 results about inline with our estimates, for revenue of $760 million and EPS of $0.02, and consensus, for revenue of $762 million and EPS of $0.01. Q2 guidance is for revenue of $725 - 775 million, and EPS of $0.00 - 0.02. We believe that Groupon likely had continued high growth in its Goods business (due to its recent acquisitions), offset by declines in the daily deals industry in Q2 (which we estimate was down 10% from Q1)."

Read More: How Apple's iPhone Ad Hints At Its Next Big Thing

-- Written by Chris Ciaccia in New York

>Contact by Email.

2 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs