) --Much has been made

about the problems

that have plagued


(GRPN) - Get Report

, which reports second-quarter earnings after the stock closes today.

Growth expectations have fallen sharply, thanks, in part, to a slowing global economy.

Groupon was able to deliver better-than-expected

first-quarter earnings

, driven by strong international growth. Still, Hudson Square's Dan Ernst expects that to have changed in the second quarter.

Ernst says sluggish economic growth in the U.S. and the debt crisis in Europe hurt Groupon's earnings. He also noted a rising dollar as a disadvantage. As a result, he reduced his earnings estimates for the rest of 2012 and 2013. He rates Groupon shares "buy," but cut his price target to $12 from $19.

International revenue doubled in the first quarter, as the brand resonated with consumers across the globe. However, U.S. growth may be slowing based on recent trends.

Raymond James analyst Aaron Kessler analyzed Google search trends and noted that worldwide searches for 'Groupon' have declined sharply year over year. Searches rose 21% in the second quarter, compared with 65% in the first quarter. He also noted that U.S. searches ticked down, slowing from 22% in the first quarter to 15% in the second. Kessler also noted that


, a daily deal aggregator, showed Groupon billings fell 3% sequentially through May in the second quarter. He rates the shares "market perform."

Analysts polled by

Thomson Reuters

expect the the Chicago-based daily deals company to post earnings of 3 cents per share on $573.13 million in revenue.

Not all is lost for Groupon, which competes with

Living Social



(AMZN) - Get Report



(GOOG) - Get Report


JPMorgan analyst Doug Anmuth says Groupon "is well-positioned to take share of the total leisure, recreation and food-service markets," which total $5.3 trillion in sales globally and $1.4 trillion in the U.S., he says.

Anmuth notes that as subscriber growth slows, profitability will move substantially higher over the next two years. Still, he's concerned about a weakening global economy. Anmuth rates the shares "neutral" with a $22 price target.

While Groupon has had its share of issues, it doesn't appear the company is going away anytime soon. Mark Twain may have said it best. "The reports of my death are greatly exaggerated."

Interested in more on Groupon? See TheStreet Ratings' report card for

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Written by Chris Ciaccia in New York

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