Will Groupon Inc (NASDAQ:GRPN) Disappoint?

Posted by Chris Bell October 30, 2013 0 Comment 1690 views

Groupon Inc (NASDAQ:GRPN) is slated to post its 2013 Q3 results on 7 November. Analysts are expecting the results to be a shade below the estimates. On an average analysts have estimated revenue to come in at $616 million with the EPS of $0.01.In the Q2, annual revenue dipped very badly. However, there had been a 10% rise in gross billing in comparison to the 4% surge in the Q1.

Groupon Goods was on par with the 17% Q1 rise which offset the 17% dip in its daily deals business.  On a y-o-y basis, there was a 45% rise in domestic revenue. However international revenue was not very hearty and dipped 25% y-o-y. Analysts project that the Q2 numbers will be a mixed bag as well. The projection is that the Q4 guidance will fall below average estimates for revenue at $274M & EPS of $0.06. In addition, the dip in daily deals is expected to affect the Q4 results.

This shaky performance from Groupon Inc (NASDAQ:GRPN) can be on account of a rise in investments, competition and staff turnover. Weak margins and a dip in growth might hurt the company’s growth prospects and its profit potential, is what analysts are saying.

A few months ago, the company had announced the appointment of the new CEO, Eric Lefkofsky. Apart from that, it had also announced the share repurchase program of $300million. Analysts believe that this will help the company’s near-term growth. Groupon Inc (NASDAQ:GRPN) has also closed a number of acquisitions and launched products like Groupon Payments, Breadcrumb and Savored.

Tuesday’s trading

In Tuesday’s trading, Groupon Inc (NASDAQ:GRPN) rose by 0.83%. The opening price of the shares was $9.34, which climbed to an intraday high of $9.52 and dipped to a close of $9.44. The 52-week low of Groupon Inc (NASDAQ:GRPN) shares is $2.60 and its 52-week high is $12.76. The company has a market capitalization of $6.28 billion.

About Chris Bell

Chris Bell is an investing reporter for GDP Insider. Chris covers financial markets and Wall Street, concentrating on developments affecting individual investors and their portfolios. Chris is also over consumer reporter and covers a wide variety of issues ranging from housing to immigration to urban poverty. Chris graduated from the University of Scranton with a degree in Communication and Philosophy. Chris's diligent investigations earned him the honor of being named "Best Reporter" once by the Headliners Foundation of Texas and once by the Houston Press Club.

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