Groupon Inc (GRPN) Q3 Earnings Preview

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Groupon Inc (NASDAQ:GRPN) is set to report its earnings numbers for the three months through September 2013 this afternoon after the market closed on Wall Street. The social deals company has had a rough time since it went public, but its fortunes appear to be picking up in 2013. On today’s market shares in the firm trended down. The stock has lost 4% at time of writing.

Groupon Inc (GRPN) Q3 Earnings Preview

In the run up to the release of these earnings numbers analysts following Groupon Inc (NASDAQ:GRPN) were looking for earnings per share of 2 cents from this afternoon’s release. The company was expected to bring in revenue of $617 million by consensus.

Groupon earnings

In the same three months of 2012 Groupon Inc (NASDAQ:GRPN) managed to bring in revenue totaling $569 million. Earnings on that revenue came to 3 cents. Groupon is recovering from business model problems that many thought could be fatal. They weren’t, but that doesn’t leave the company in an incredibly strong position.

Groupon is expected to make a profit of 13 cents per share for the full year 2013. The company earned a total of 6 cents per share for the full year 2012. The company’s earnings are growing, but there are a lot of risks for the company heading into earnings.

Groupon performance

Groupon Inc (NASDAQ:GRPN) is releasing its earnings on the day another highly valued internet company went public. Twitter Inc (NYSE:TWTR) suffers from many of the same problems as Groupon, but the company’s IPO was deemed a success on Thursday. Groupon has not been so lucky.

Since the company went public back in the closing months of 2011 shares have lost more than 60% of their value. Groupon Inc (NASDAQ:GRPN) has seen an incredible recovery in 2013, but it hasn’t been enough to raise the company above the price it went public at. Shares in Groupon have close to doubled since the year began.

The intense rise in the price of Groupon Inc (NASDAQ:GRPN) stock leaves the company valued at more than $6 billion. The company’s earnings are not exactly solid, and that price factors in a large amount of future growth. Given the high valuation of the company trading after the announcement might be volatile. Groupon Inc (NASDAQ:GRPN) is taking a risk heading into earnings.

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