Groupon Jumps 11% After Q2 EPS Crushes Estimates Despite Revenue Miss
GRPN has more than doubled off its 52-week low of $9.17.
Summary
Groupon reported a Q2 loss of $0.04 per share, beating the consensus estimate of a $0.09 loss by a wide margin. Revenue of $124.7M missed the $127.1M Street view and fell 1% year-over-year, with softness in North American Health, Beauty & Wellness. The stock surged 10.7% in after-hours trading, reflecting relief on the bottom-line beat. This follows a Reuters report earlier this evening that highlighted the revenue miss and segment weakness but did not include the EPS beat or the stock's reaction. Active customers grew 2% to 16.1M, and management cited momentum entering Q3 with expected second-half acceleration. The restructuring plan announced in May, including 400 job cuts and a raised EBITDA guide, provides a backdrop of cost discipline that may be contributing to the improved profitability outlook.
At the time of this announcement, GRPN was trading at $27.50 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $955.3M. The 52-week trading range was $9.17 to $43.08. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Benzinga.