Why Groupon (GRPN) Stock Is Plunging in After-Hours Trading Today

NEW YORK (TheStreet) -- Groupon  (GRPN) plunged in after-hours trading Tuesday after the online deal company reported second-quarter revenue that came up short of analysts' expectations.

The company reported adjusted earnings of a penny a share on revenue of $751.6 million, up from $608.7 million in the same period one year earlier. Analysts had expected earnings of a penny a share on revenue of $761.8 million.

Groupon issued third-quarter adjusted EPS guidance in the range of flat to 2 cents a share on revenue in the range of $720 million to $770 million. The consensus estimate calls for EPS of 3 cents on revenue of $760.62 million.

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The stock was down 13% to $6.15 at 4:14 p.m.

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. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."

You can view the full analysis from the report here: GRPN Ratings Report

GRPN Chart GRPN data by YCharts

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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