A Preview Of Groupon's Earnings

Groupon GRPN will release its quarterly earnings report on Tuesday, 2024-11-12. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Groupon to report an earnings per share (EPS) of $-0.08.

The announcement from Groupon is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Earnings Track Record

The company's EPS missed by $0.05 in the last quarter, leading to a 15.21% drop in the share price on the following day.

Here's a look at Groupon's past performance and the resulting price change:

Tracking Groupon's Stock Performance

Shares of Groupon were trading at $10.96 as of November 08. Over the last 52-week period, shares are up 14.05%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Observations about Groupon

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Groupon.

Groupon has received a total of 2 ratings from analysts, with the consensus rating as Buy. With an average one-year price target of $23.0, the consensus suggests a potential 109.85% upside.

Peer Ratings Overview

This comparison focuses on the analyst ratings and average 1-year price targets of and Groupon, three major players in the industry, shedding light on their relative performance expectations and market positioning.

Comprehensive Peer Analysis Summary

In the peer analysis summary, key metrics for and Groupon are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Groupon ranks at the bottom for Revenue Growth with a decrease of 3.48%. It also ranks lowest for Gross Profit at $112.67M. Additionally, it has the lowest Return on Equity at -24.66%. Overall, Groupon is positioned at the bottom compared to its peers across all metrics analyzed.

Get to Know Groupon Better

Groupon Inc acts as the middleman between consumers and merchants, offering a variety of products and services at discounts via its online store. It offers consumers daily deals from local merchants. The company's operations are organized into two segments: North America and International. The company generates the majority of its revenue from North America. The company generates revenue from transactions during which the company generates commissions by selling goods or services on behalf of third-party merchants. Revenue also includes commissions the company earn when customers make purchases with retailers using digital coupons accessed through its digital properties.

Groupon's Financial Performance

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Decline in Revenue: Over the 3 months period, Groupon faced challenges, resulting in a decline of approximately -3.48% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: Groupon's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -8.05%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -24.66%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Groupon's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -1.74%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Groupon's debt-to-equity ratio surpasses industry norms, standing at 5.78. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

To track all earnings releases for Groupon visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.