NEW YORK (TheStreet) -- Shares of GrubHub (GRUB) - Get Report are gaining 26.97% to $39.03 on heavy trading volume this afternoon after the company reported higher-than-anticipated 2016 second quarter results before today's opening bell.
Adjusted earnings for the period were 23 cents per share, beating estimates of 19 cents per share. The company also reported a 37% year-over-year increase in revenue at $120.2 million. Wall Street was looking for $114.18 million.
Guidance for fiscal year 2016 revenue is up to $480 million-$488 million, higher than the company's previous projection of $450 million-$465 million.
Over 9.5 million shares of the stock have traded so far today, higher than the average of 1.76 million shares per day.
"This is a clear re-acceleration of the business," said CEO Matt Maloney, the Wall Street Journal reports. The company generated a record number of orders in the second quarter despite seasonal headwinds. Total order growth is up 23% year-over-year.
GrubHub, a New York-based online platform for restaurant pick-up and delivery orders, had 7.35 active diners in the quarter, a 24% growth over last year.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "hold" with a ratings score of C.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, TheStreet Ratings finds weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and weak operating cash flow.
You can view the full analysis from the report here: GRUB