Please ensure Javascript is enabled for purposes of website accessibility

Why Groupon, Inc. Shares Skyrocketed Today

By Evan Niu, CFA – Feb 12, 2016 at 12:15PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The online-deal operator posted a better-than-expected fourth quarter.

What: Shares of Groupon (GRPN -2.92%) have skyrocketed today, up by 26% as of 11:54 a.m. ET, after the company reported a fourth quarter that beat analyst expectations.

So what: Revenue in the fourth quarter added up to $917.2 million, with gross billings of $1.7 billion. Adjusted earnings per share were $0.04. Both top- and bottom-line results were ahead of Groupon's own guidance as well as consensus estimates. Analysts were expecting Groupon to report an adjusted net loss of $0.05 per share. Global units were flat in the fourth quarter at 62 million.

Now what: Active customers increased modestly to 48.9 million, most of which are in North America. CEO Rich Williams said the company continues to move away from low-margin products and is optimistic about the year ahead. Outlook for 2016 expects margins to rise and Groupon is shifting its focus away from international markets. Revenue for this year should be in the range of $2.75 billion to $3.05 billion.

Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Groupon, Inc. Stock Quote
Groupon, Inc.
$8.99 (-2.92%) $0.27

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.