Groupon Earnings Preview: Can the Deal-Making Platform Deliver Positive Results?

## Groupon Earnings Preview: Can the Deal-Making Platform Deliver Positive Results?

Groupon, the popular platform offering deals and discounts on various products and services, will release its quarterly earnings report on

Tuesday, November 12th, 2024

. Investors will be closely watching this announcement, hoping for signs of a turnaround for the company.

What to Expect:

Analysts anticipate Groupon to report an earnings per share (EPS) of

$-0.08

. While a loss is expected, investors will be looking for signs of improvement, surpassing estimates, and positive guidance for the upcoming quarter. Guidance plays a crucial role in shaping stock price movements, so investors will be paying close attention to any forward-looking statements.

A Look Back at Groupon’s Recent Performance:

Groupon’s recent performance hasn’t been particularly positive, with the company missing EPS estimates in the previous quarter, resulting in a

15.21%

share price drop the following day. Here’s a snapshot of Groupon’s past performance and the corresponding price changes:

| Quarter | EPS Estimate | EPS Actual | Price Change (%) |
|————-|—————|————|——————|
| Q2 2024 | 0.03 | -0.02 | -15.0 |
| Q1 2024 | 0.05 | 0.06 | 24.0 |
| Q4 2023 | 0.11 | 0.30 | -31.0 |
| Q3 2023 | 0.11 | -0.12 | -35.0 |

As of November 8th, Groupon shares were trading at

$10.96

. Over the past 52 weeks, the stock has seen a

14.05%

increase. While this suggests some optimism among long-term shareholders, the upcoming earnings release will be a key indicator of the company’s future trajectory.

Analyst Sentiment and Expectations:

Understanding the market sentiment and expectations surrounding Groupon is crucial for investors. Here’s a breakdown of the current analyst insights:

* Groupon has received a total of

2 ratings

from analysts, with the consensus rating being

Buy

.
* The average one-year price target stands at

$23.0

, representing a potential

109.85%

upside.

Peer Comparisons:

To gain further insight, let’s compare Groupon to some of its key competitors:

Company

|

Consensus

|

Revenue Growth

|

Gross Profit

|

Return on Equity

——- | ——– | ——– | ——– | ——–
Groupon | Buy | -3.48% | $112.67M | -24.66%

Key Takeaway:

Groupon currently ranks at the bottom for Revenue Growth with a decrease of 3.48%. It also has the lowest Gross Profit and Return on Equity compared to its peers. This highlights the challenges Groupon faces in maintaining strong financial performance.

Getting to Know Groupon Better:

Groupon operates as an intermediary between consumers and merchants, offering a variety of discounted products and services through its online platform. The company’s operations are divided into two segments: North America and International, with the majority of its revenue coming from the North American market. Groupon generates revenue through commissions earned from transactions made on its platform, including sales of goods and services, and digital coupons.

Financial Performance Snapshot:

*

Market Capitalization:

Groupon’s market capitalization falls below industry averages, reflecting its smaller scale compared to its competitors.
*

Revenue Decline:

Groupon experienced a decline in revenue growth of approximately -3.48% over the past three months, ending June 30th, 2024. This suggests a reduction in the company’s top-line earnings.
*

Net Margin:

Groupon’s net margin is below industry averages, pointing to potential challenges in maintaining strong profitability. A net margin of -8.05% indicates potential difficulties in managing costs effectively.
*

Return on Equity (ROE):

Groupon’s ROE is below industry benchmarks, signaling potential difficulties in efficiently utilizing equity capital. An ROE of -24.66% suggests 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 is significantly higher than industry norms, standing at 5.78. This suggests the company carries a substantial amount of debt, potentially posing financial challenges.

Conclusion:

Groupon’s upcoming earnings release will be a crucial event for the company and its investors. While the platform faces challenges, including a decline in revenue and below-average financial performance, investors will be looking for signs of improvement and a clear path toward future growth.