Groupon stock gains after earnings top expectations

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Shares of Groupon Inc. are up 5.9% in premarket trading Friday after the discounting platform showed progress on profits in its most recent quarter. The company posted net income of $78.1 million, or $2.36 a share, whereas it lost $16.3 million, or 57 cents a share, in the year-earlier quarter. The company noted that its “other income” line benefited from an $89.1 million unrealized gain related to an equity investment. Groupon saw adjusted earnings per share of 38 cents, up from 15 cents a year earlier and ahead of the FactSet consensus, which called for 11 cents. Revenue declined to $214.2 million from $304.0 million, whereas analysts had been looking for $213.0 million. For the full year, Groupon now expects revenue of $950 million to $975 million and adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda) of $130 million to $135 million. Analysts tracked by FactSet were expecting revenue of $989 million and adjusted Ebitda of $122 million. The company is seeing “meaningful progress” as it looks to grow its local inventory and improve the experience for its merchants, Interim Chief Executive Aaron Cooper said in a release. Shares have declined 36% over the past three months as the S&P 500 SPX, +0.37% has gained 6%.

This article was originally published by Marketwatch.com. Read the original article here.

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