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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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

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.

If you liked this article you might like

Dow Soars Over 250 Points to Post Its Fourth Straight Day of Gains
Inflation, Chipotle, Credit Suisse and Sam's Club - 5 Things You Must Know

Inflation, Chipotle, Credit Suisse and Sam's Club - 5 Things You Must Know

Will Inflation Set Stocks' Hearts Aflutter or Be a Poison Arrow? -- Market Recon

Will Inflation Set Stocks' Hearts Aflutter or Be a Poison Arrow? -- Market Recon

The Really Big Money Rushes to Super Bowl

The Really Big Money Rushes to Super Bowl

What Warren Buffett's Two Successors Could Still Learn From the Billionaire

What Warren Buffett's Two Successors Could Still Learn From the Billionaire