The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Groupon met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP loss per share grew. GAAP loss per share didn't move.
Gross margins shrank, operating margins increased, net margins increased.
Groupon reported revenue of $638.3 million. The 20 analysts polled by S&P Capital IQ predicted a top line of $640.4 million on the same basis. GAAP reported sales were 30% higher than the prior-year quarter's $492.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.08. The 23 earnings estimates compiled by S&P Capital IQ averaged $0.03 per share. Non-GAAP EPS were -$0.08 for Q4 compared to -$0.02 per share for the prior-year quarter. GAAP EPS of -$0.12 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 55.7%, much worse than the prior-year quarter. Operating margin was -2.0%, 100 basis points better than the prior-year quarter. Net margin was -12.7%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $605.4 million. On the bottom line, the average EPS estimate is $0.03.
Next year's average estimate for revenue is $2.63 billion. The average EPS estimate is $0.22.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 159 members out of 794 rating the stock outperform, and 635 members rating it underperform. Among 268 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give Groupon a green thumbs-up, and 231 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Groupon is hold, with an average price target of $4.83.
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