Will Groupon Inc (NASDAQ:GRPN) Disappoint?
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.
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.