Groupon, Inc. (NasdaqGS:GRPN) is scheduled to report Q3 earnings results after markets close for trading on November 5, 2020.
The company is expected to report earnings of -$0.68/share on revenue of $321.4 million. The consensus earnings per share (EPS) of -$0.68/share is based on a poll of 7 analysts and represents a decline in eps of −441.6% over the same quarter last year, when the company reported earnings of $0.20/share.
The revenue forecast of $321.4 million based on a poll of 7 analysts implies a year-over-year (YoY) decline in revenue of −35.2%. Last year the company reported $495.6 million in revenue for the quarter.
|Metric||Expected||Prior Year||YoY Change|
Earnings Call Trends
Historically, management has exceeded analyst expectations 4 out of the last 8 tracked quarters, and missed expectations 4 quarters.
What are your expectations from Groupon, Inc. for earnings this quarter? Let us know in the comments!
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 55.8%.
|Report Date||Price Day Prior||Price Next Day||Change %||Result|
|August 6, 2020||$16.54||$25.77||55.8%||Increase|
|June 16, 2020||$24.17||$21.52||−11.0%||Decline|
|February 18, 2020||$56.60||$34||−39.9%||Decline|
|November 4, 2019||$57.40||$60||4.5%||Increase|
The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −3.96, the model suggests that the company is not likely to be an earnings manipulator. A value of −3.96 implies a 0.0% chance of earnings manipulation.
Fundamentals And Technical Analysis
Groupon, Inc. is currently trading at $19.39/share, down −6.8% for the day. The company is trading at approximately 30.7% of its 52-week high of $63.20/share. The company’s stock price is down −24.8% since the last earnings report and down −5.1% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 37.73 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of −2.46 and a forward P/E multiple of −6.84.
Groupon, Inc.’s current share price also implies a price-to-book (P/B) multiple of 4.73. The following table summarizes some other key fundamental ratios:
|Last Reported Fiscal Period Key||FY2020.Q2|
|Period End Date||June 30, 2020|
|Stock Price (Current)||$19.39|
|P/E Ratio (Fwd)||−6.8x|
|Total Debt / Total Capital||48.4%|
|Levered Free Cash Flow||$12.605 million|
|EV / EBITDA||−34.1x|
Groupon, Inc. is a small-cap stock with a market capitalization of $557.1 million and a total enterprise value of $333.7 million. The company operates in the Consumer Discretionary sector and the Internet & Direct Marketing Retail industry.
Groupon, Inc. operates online local commerce marketplaces that connect merchants to consumers by offering goods and services at a discount in North America and internationally. The company provides deals in various categories, including events and activities; health, beauty, and wellness; food and drink; home and garden; automotive; discounted and market rates for hotel, airfare, and package deals, as well as deals on various product lines, such as electronics, sporting goods, jewelry, toys, household items, and apparel. It offers its deal offerings to customers through Websites; search engines; mobile applications and mobile, which enable consumers to browse, purchase, manage, and redeem deals on their mobile devices; emails and push notifications; affiliate channels; social and display advertising; and offline marketing. The company was formerly known as ThePoint.com, Inc. and changed its name to Groupon, Inc. in October 2008. Groupon, Inc. was founded in 2008 and is headquartered in Chicago, Illinois.