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New York Markets After Hours

May 9, 2018, 8:46 a.m. EDT

Groupon's stock soars after surprise adjusted profit, revenue beat

Shares of Groupon Inc. (NAS:GRPN) shot up 13% in premarket trade Wednesday, after the provider of online coupons reported a surprise adjusted profit and revenue that fell less than expected. The net loss narrowed to $6.9 million, or 1 cent a share, from $24.4 million, or 4 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 3 cents, while the FactSet consensus was for a breakeven quarter. Revenue fell 7% to $626.5 million, but was above the FactSet consensus of $604.2 million. Total gross billings declined 4.8% to $1.29 billion, but beat the FactSet consensus of $1.28 billion. The company raised its 2018 guidance range for adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) to $280 million to $290 million from $260 million to $270 million. Separately, Groupon announced a new $300 million share repurchase program, to replace the recently expired program. The stock had shed 5.1% year to date through Tuesday, while the S&P 500 (S&P:SPX) had eased 0.1%. (This updates an earlier item that incorrectly described how the latest quarter's net loss compared with the year ago loss.)

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