How Will Groupon (GRPN) Stock React to Earnings Beat, New CEO?
NEW YORK (TheStreet) -- Groupon (GRPN) - Get Report reported better than expected earnings for the third quarter of 2015 after the market close on Tuesday. Revenue fell short of estimates.
The company reported earnings of 5 cents per share for the quarter ended September 30, beating estimates by 3 cents.
Revenue was nearly flat year-over-year at $713.6 million, missing estimates of $732.7 million due to unfavorable foreign exchange rates.
Active customers, which are those who purchased a voucher or a product on Groupon in the past year, increased 4% to 48.6 million.
Additionally, Groupon promoted COO Rich Williams to CEO and board member, effective immediately.
Williams replaces Groupon co-founder Eric Lefkofsky who will become chairman.
"Now is the right time for me to return to my role as chairman, and let Rich, who has done a tremendous job over the past four years, lead Groupon during this next stage," Lefkofsky said in a statement.
The outgoing chairman, Ted Leonsis, will stay with the company as lead independent director.
Groupon stock closed up 5.22% to $4.03 on Tuesday afternoon.
Separately, TheStreet Ratings team rates GROUPON INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
We rate GROUPON INC (GRPN) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: GRPN
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