Groupon Slips 1.5% to $12.20 as Q1 EPS Forecast Jumps 114%
Shares of Groupon closed at $12.20 on March 6, down 1.53% as the stock underperformed the S&P 500, Nasdaq and its Retail-Wholesale sector. The company is set to report earnings on March 10, with Q1 EPS expected at $0.17 (up 114%) on $137.2 million in revenue.
1. Stock Performance March 6
Groupon shares closed at $12.20 on March 6, marking a 1.53% decline from the prior session. This drop outpaced the S&P 500’s 1.33% loss and trailed the Retail-Wholesale sector’s 2.54% decline, while the Dow fell 0.95% and the Nasdaq slid 1.59%.
2. Q1 Earnings Outlook
The company will release its first-quarter results on March 10, with consensus estimates projecting EPS of $0.17, a 114.17% increase versus the year-ago period. Revenue for the quarter is forecast at $137.17 million, representing a 5.2% year-over-year rise.
3. Full-Year Forecasts
For the full fiscal year, EPS is estimated at –$2.11, down 39.74% from last year, while revenue is expected to reach $502.88 million, a 2.1% increase. These projections reflect ongoing challenges in profit generation despite modest top-line growth.
4. Valuation and Industry Position
Groupon trades at a forward P/E of 18.58, compared with its industry average of 15.83, indicating a valuation premium. Consensus EPS estimates have been revised 9.91% lower over the past 30 days, and the Internet-Commerce industry sits in the bottom 40% of all sectors by average rank.