Groupon Inc (NASDAQ:GRPN) reported $0.02 earnings per share (EPS) for the second quarter of the current fiscal, which is in line with the consensus estimate of Wall Street analysts. The daily deals company said its revenue was $608 million, slightly higher than the $606 million expectation of analysts.
Groupon Inc (NASDAQ:GRPN) posted an operating income of $27.4 million, and it ended the quarter with $1.2 billion in cash.
The daily deals company expects to achieve revenue of around $585 million to $635 million for the third quarter compared with the consensus estimate of approximately $621 million.
Groupon announces strongest quarter ever
Ahead of the Groupon Inc (NASDAQ:GRPN) earnings report, Sternee Agee increased its price target for the stock from $9 to $12 per share.
Eric Letfkofsky, chief executive officer of Groupon Inc (NASDAQ:GRPN), said, “We significantly exceeded our operating income expectations, and delivered our strongest quarter ever in North America, due in part to accelerated billings growth of 30%. With two quarters on the job, I’m pleased with the progress we’ve made in such a short time. We continue to gain traction in mobile, with nearly 50% of our North American transactions coming from mobile in June. To date, more than 50 million people have downloaded Groupon apps worldwide.”
Groupon also approves share repurchase
The board of directors of Groupon Inc (NASDAQ:GRPN) confirmed the appointment of Leftkofsky as CEO and Ted Leonsis as Chairman.
The board said it is encouraged by the performance of the company under the leadership of Leftkofsky. “We’re pleased that he has agreed to lead the company through this important stage of its evolution,” said Leonsis.
Groupon Inc (NASDAQ:GRPN) also approved a shares repurchase program worth $300 million over the next 24 months. The schedule and amount of stocks to be purchased by the company will depend on market conditions, stock prices, and other factors, and the board may suspend it any time.
Groupon Inc (NASDAQ:GRPN) is trading higher at around $8.72 a share following its positive financial performance. Over the past 52-week range, the stock price of the company went up from $2.60 per share to $9.43 per share.