GrubHub Falls After Q2 Earnings Miss

GrubHub GRUB shares are trading lower after the company reported worse-than-expected second-quarter results.

The company reported earnings of 27 cents per share, which missed the analyst consensus estimate of 3 cents. This is a 46% decrease over earnings of 5 cents per share from the same period last year.

GrubHub reported quarterly sales of $325.1 million, which beat the analyst consensus estimate of $319.14 million. This is a 35.60% increase over sales of $239.741 million the same period last year.

"The team continued executing in the second-quarter, adding thousands of new, high-quality independent and enterprise restaurants and growing our active diner base to more than 20 million," said CEO Matt Maloney. "We are excited about the trajectory of our two-sided marketplace – both in terms of geographic diversity and depth in individual markets. Restaurants are increasingly valuing the incremental sales and products we provide, while diners highly regard our robust restaurant selection and consistently low transaction fees."

Grubhub adjusted third-quarter sales to $320 million-$340 million versus a $332.07 million estimate and sees fiscal year 2019 sales $1.34 billion-$1.39 billion versus a $1.37 billion estimate.

GrubHub shares were trading down 6.8% at $74.30 in Tuesday’s pre-market session. The stock has a 52-week high of $149.35 and a 52-week low of $60.20.

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