Shares of GrubHub undefined fell sharply in after-hours trading Monday after the food delivery company delivered financial results that missed Wall Street analyst estimates.
GrubHub reported non-GAAP net income of $24.7 million, or 27 cents a share, vs. $42.2 million, or 45 a share in the same period a year ago. Revenue rose 30% to $322.1 million vs. $247.2 million a year earlier.
The company had been expected to report adjusted net income of $40.3 million, or 43 cents a share, on sales of $387 million, based on a FactSet survey of 27 analysts.
Grub Hub forecasted fourth-quarter revenue between $315 million and $335 million. Analysts were forecasting $422.2 million.
In a letter to shareholders, the company said expectations for lower orders; additional spending to boost the number of restaurants it works with; and promotional free delivery for large chains, including Yum Brands' (YUM) - Get Free Report KFC and Taco Bell and McDonald's (MCD) - Get Free Report , are all weighing on expectations.
The stock fell $13.72, or 24%, to $44.67 in after-hours trading.
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