Groupon (GRPN) Expected to Announce Earnings of $0.04 Per Share

Wall Street brokerages predict that Groupon (NASDAQ:GRPN) will report $0.04 earnings per share for the current fiscal quarter, Zacks reports. Eight analysts have provided estimates for Groupon’s earnings. The highest EPS estimate is $0.09 and the lowest is ($0.01). Groupon reported earnings per share of $0.02 during the same quarter last year, which suggests a positive year-over-year growth rate of 100%. The business is expected to issue its next quarterly earnings results on Wednesday, August 1st.

On average, analysts expect that Groupon will report full year earnings of $0.23 per share for the current fiscal year, with EPS estimates ranging from $0.12 to $0.32. For the next year, analysts anticipate that the company will report earnings of $0.27 per share, with EPS estimates ranging from $0.12 to $0.35. Zacks Investment Research’s EPS averages are a mean average based on a survey of analysts that follow Groupon.

Groupon (NASDAQ:GRPN) last released its quarterly earnings results on Wednesday, May 9th. The coupon company reported $0.03 EPS for the quarter. Groupon had a return on equity of 6.53% and a net margin of 1.13%. The company had revenue of $626.54 million during the quarter, compared to analysts’ expectations of $604.16 million. During the same period last year, the business posted $0.01 earnings per share. The firm’s revenue was down 7.0% compared to the same quarter last year.

A number of equities research analysts have commented on the company. ValuEngine upgraded Groupon from a “sell” rating to a “hold” rating in a research note on Friday, May 11th. Barclays reiterated a “sell” rating and issued a $4.75 price target on shares of Groupon in a research note on Friday, May 11th. UBS upgraded Groupon from a “sell” rating to a “neutral” rating and increased their price target for the company from $2.90 to $5.99 in a research note on Thursday, May 10th. Goldman Sachs restated a “neutral” rating and issued a $4.80 price objective on shares of Groupon in a research note on Thursday, February 15th. Finally, BidaskClub cut Groupon from a “hold” rating to a “sell” rating in a research note on Saturday, February 17th. Two investment analysts have rated the stock with a sell rating, eleven have assigned a hold rating, six have issued a buy rating and one has issued a strong buy rating to the stock. The company presently has an average rating of “Hold” and an average target price of $5.30.

Groupon opened at $4.87 on Wednesday, MarketBeat reports. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.05 and a quick ratio of 1.05. Groupon has a one year low of $4.88 and a one year high of $5.05. The stock has a market capitalization of $2.87 billion, a price-to-earnings ratio of -162.33, a price-to-earnings-growth ratio of 9.49 and a beta of 1.40.

Groupon announced that its board has approved a stock repurchase program on Wednesday, May 9th that authorizes the company to buyback $300.00 million in outstanding shares. This buyback authorization authorizes the coupon company to purchase up to 11% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

In related news, CAO Brian Stevens sold 15,000 shares of the firm’s stock in a transaction dated Thursday, March 8th. The stock was sold at an average price of $4.61, for a total transaction of $69,150.00. Following the sale, the chief accounting officer now directly owns 232,751 shares of the company’s stock, valued at $1,072,982.11. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Eric P. Lefkofsky sold 1,500,000 shares of the firm’s stock in a transaction dated Thursday, March 8th. The stock was sold at an average price of $4.60, for a total value of $6,900,000.00. The disclosure for this sale can be found here. 23.40% of the stock is owned by company insiders.

A number of institutional investors have recently bought and sold shares of GRPN. Paloma Partners Management Co acquired a new stake in Groupon during the fourth quarter worth about $110,000. Element Capital Management LLC acquired a new stake in Groupon during the first quarter worth about $110,000. US Bancorp DE acquired a new stake in Groupon during the fourth quarter worth about $133,000. ETRADE Capital Management LLC acquired a new stake in Groupon during the fourth quarter worth about $157,000. Finally, Xact Kapitalforvaltning AB acquired a new stake in Groupon during the fourth quarter worth about $192,000. 65.77% of the stock is currently owned by hedge funds and other institutional investors.

Groupon Company Profile

Groupon, Inc operates online local commerce marketplaces that connect merchants to consumers by offering goods and services at a discount in North America and internationally. The company provides deals in various categories, including events and activities, beauty and spa, health and fitness, food and drink, home and garden, and automotive; and deals on various product lines, such as electronics, sporting goods, jewelries, toys, household items, and apparel, as well as provides discounted and market rates for hotel, airfare, and package deals.

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