The 10-second takeaway
For the quarter ended March 31 (Q1), Groupon beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew. GAAP loss per share dropped.
Gross margins shrank, operating margins dropped, net margins increased.
Groupon reported revenue of $601.4 million. The 22 analysts polled by S&P Capital IQ anticipated revenue of $591.0 million on the same basis. GAAP reported sales were 7.5% higher than the prior-year quarter's $559.3 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 $0.03. The 23 earnings estimates compiled by S&P Capital IQ predicted $0.03 per share. Non-GAAP EPS of $0.03 for Q1 were 50% higher than the prior-year quarter's $0.02 per share. GAAP EPS were -$0.01 for Q1 versus -$0.02 per share for 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 63.0%, much worse than the prior-year quarter. Operating margin was 3.5%, 360 basis points worse than the prior-year quarter. Net margin was -0.7%, 10 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $618.4 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $2.55 billion. The average EPS estimate is $0.21.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 158 members out of 791 rating the stock outperform, and 633 members rating it underperform. Among 260 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Groupon a green thumbs-up, and 227 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 $5.28.
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