Grubhub Inc released its earnings numbers for its first quarter of 2014 this afternoon after the market close in New York. The fast food marketplace showed earnings of 6 cents per share for the three month period. the company recorded revenue at $59 million. On Thursday’s stock market shares in the company traded strongly upward and finished the day at $31.38.
In the run up to the release of Thursday’s figures analysts were expecting Grubhub Inc (NASDAQ:GRUB) to show earnings of just 3 cents per share. The company’s revenue was expected to come in at $53.4 million. It’s just one month since the company went public.
Hard time for web start ups
Grubhub Inc (NASDAQ:GRUB) has, at the very least the prestige of actually earnings money, but nonentheless it’s been a difficult time for web start-ups. The market has punished companies valued well beyond their earnings ability in the early months of 2014, and those with a business based on the internet were hurt harder than most.
The problems with momentum stocks have hit some of the biggest companies out there and despite Grubhub Inc (NASDAQ:GRUB) performance in the first quarter the company is likely to see that dynamic form a major push on its stock market performance in the coming months. The company is but a small boat, and the tide does not always rise to raise them
Grubhub jumps on positive start
Grubhub Inc (NASDAQ:GRUB) shares jumped on the after market as a result of the company’s EPS and revenue beat in its first ever public earnings report. The company’s stock was up by 5% at time of writing. The increase will relieve the company’s investors who saw their stakes rattled by a difficult market. the company’s stock has lost more than 7% of its value from its IPO through Thursday’s close.
Investors in Grubhub Inc (NASDAQ:GRUB) and analysts interested in the company’s future, are invited to participate on a conference call with the company later on this evening. The call will take place at 5 PM EST and will allow the company’s investors to find out about the company’s plans to continue growing its business, and justifying its massive $2.5 billion valuation.