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Is It Time To Buy Groupon Inc Stock? (GRPN)

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Groupon, Inc. (GRPN) Consumer Discretionary – Internet & Catalog Retail | Reports April 28, After Market Closes

Groupon Inc (GRPN) 4Q Earnings – Key Takeaways

  • The Estimize consensus is calling for EPS of $0.00, down 63% in the past 3 months, on $724.22 million in revenue, 3 cents higher than Wall Street on the bottom and $17 million on the top
  • New CEO, Rich Williams, plans to revamp Groupon with a focus on marketing, international and shopping
  • Groupon’s massive beat last quarter doesn’t make up for the consistent losses they continue to incur
  • What are you expecting for GRPN? Get your estimate in here!

Groupon is scheduled to report fourth quarter earnings April 28, after the bell. Despite a massive beat last quarter, GRPN has been unable to establish market share in its core business. The company recently appointed a new CEO who outlined three focus areas for leading the company to growth: marketing, international expansion and shopping. While Groupon is primed to benefit from these trends in the long run, it will have no bearing on how the company reports tomorrow

The Estimize consensus is calling for EPS of $0.00, down 63% in the past 3 months, on $724.22 million in revenue, 3 cents higher than Wall Street on the bottom and $17 million on the top. Compared to a year earlier, profits are forecasted to decline 138% with sales down as much as 4%. Given Groupon’s unfavorable year-over-year comparisons, it’s not surprising that the stock is historically a big mover through earnings season. In the moments prior to earnings, shares typically decrease 4% but then recover to a 6% increase 30 days following results.

Groupon’s massive beat last quarter was highlighted by jumps in several key financial and consumer metrics. In Q4 alone, Groupon sold more than 1 billion units, saving consumers in North America nearly $20 billion.These gains came on the back of an increasing number of merchants, heavy investments worldwide and growing search traffic. Groupon is now predominantly a mobile business, accounting for more than 55% of all its transactions. The company also benefited after Alibaba acquired a 5.6% in the company earlier this year.

Unfortunately, GRPN  is still an afterthought to large online marketplaces like Amazon and even eBay. CEO, Rich William’s ongoing restructuring plan will shift Groupon away from a deal business to a local marketplace. For this, the company has outlined three key focal areas: marketing, international and shopping. This reorganization will weigh heavily on financials in the near term and has been a cause of plunging stock prices. Meanwhile, Groupon is simply not profitable and competing in a crowded space against giants such as Amazon and WalMart has certainly not helped. That said, with the stock now up 60% boost in the past 3 months, GRPN  is hoping they can continue its success this quarter.

Groupon Inc (GRPN)

Do you think GRPN can beat estimates? There is still time to get your estimate in here!

Is Now the Time to Buy Groupon Inc (GRPN)? by Estimize

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