Boston, MA 10/30/2013 (wallstreetpr) – Groupon Inc (NASDAQ:GRPN) will be posting its Q3 result earnings for F2013 on November 7 amid speculations that the results will fall below estimates. Analysts at Ascendiant expect the revenue to clock at $625 million with earnings per share of $0.01 while consensus for revenue being at $616 million with an EPS ratio of $0.01. The results look set to be similar to its Q2 results where revenue slipped amid an increase of gross billing of 10%. Groupon in the second quarter saw domestic revenue surging by 45% on a year over year basis with international revenue coming at a decline of 25%. This is a clear indication that the company’s’ third quarter results will also be mixed.
Guidance for the fourth quarter expects a dip in consensus revenue of $274million with an EPS of $0.06 with the results expected to be greatly influenced by a decline in daily deals. Groupon expects to perform even better in the coming quarters especially after massive restructuring of its businesses in the US while also planning to stabilize its international businesses. Groupons’ bad results in the past quarters can be attributed to low staff turnover massive competition from similar entities and increased investments. The company has been quick in the past to exude confidence to its investors and shareholders by announcing Eric LefKofsky as its CEO and announcing a stock buyback plan of $300 million.
The company looks set to do better in the coming years especially after completing a string of acquisitions and the launching of new products such as Breadcrumb, Savored and Groupon payment. These factors look likely to fuel growth in the long run but may also pressure incremental costs. Since its Q2 earnings report in August the company stock has soared by 46%to clock a high of $12.76 from $8.72. These gains are a major boost with the company reaffirming operating income that may exceed $100 million.
