Groupon expects to report earnings in the range of break-even to a profit of 2 cents a share and revenue of $790 million to $840 million for the first quarter. Analysts expect the company to report earnings of 1 cent and revenue of $817.46 million for the quarter.
In the first quarter of 2014, Groupon reported a loss of 1 cent a share for the quarter, above analysts' estimates of a loss of 3 cents a share. The company reported revenue of $757.64 million in the year-ago quarter, which beat analysts' estimates for revenue of $738.4 million.
About 7.8 million shares of Groupon were traded by 12:48 p.m. Monday, compared to the company's average trading volume of about 10.3 million shares a day.
TheStreet Ratings team rates GROUPON INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate GROUPON INC (GRPN) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- GRPN's revenue growth has slightly outpaced the industry average of 19.8%. Since the same quarter one year prior, revenues rose by 20.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- GROUPON INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, GROUPON INC continued to lose money by earning -$0.11 versus -$0.14 in the prior year. This year, the market expects an improvement in earnings ($0.15 versus -$0.11).
- GRPN's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.94 is somewhat weak and could be cause for future problems.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Internet & Catalog Retail industry and the overall market, GROUPON INC's return on equity significantly trails that of both the industry average and the S&P 500.
- In its most recent trading session, GRPN has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- You can view the full analysis from the report here: GRPN Ratings Report