) is scheduled to release its fiscal second quarter 2012 results
after the closing bell on August 13, 2012. In the run up to the
earnings release we do not notice any significant estimates
revision by the analysts covering the stock.
Previous Quarter Highlights
Groupon reported better-than-expected first quarter results.
Quarterly revenue of $559.3 million soared 89.0% year over year,
driven by higher gross billing and steady increase in the number of
Groupon's quarterly loss per share (including stock based
compensation) of 2 cents was narrower than the Zacks Consensus
Estimate of a loss of 4 cents. Strong revenue growth and lower
marketing expense drove the quarterly result.
For further details please read:
Groupon Posts Profit in 1Q
Estimate Revision Trend
In the last 30 days, out of the 12 analysts covering the stock,
only one downward revision was noticed. The Zacks Consensus
Estimate for the second quarter was pinned at a loss of 2 cents per
share over the same period.
Analysts expect expansion of the paid-user base to positively
impact the company's top line. Moreover, higher gross billing on a
year-over-year basis is expected to drive revenues.
However, currency fluctuations (owing to weak euro) remain a
We believe that Groupon is well positioned to gain from
increasing e-commerce spending on mobile devices, profitable
domestic market and an under penetrated international market. We
expect these opportunities to continue to drive top-line growth
going forward. Moreover, Groupon enjoys a first-mover advantage in
the daily deals market based on its well-recognized discount
However, we believe that the market is getting more competitive
due to the growing interest from technology stalwarts such as
Moreover, we believe that Groupon need to earn profits on a
consistent basis for the next couple of quarters to gain confidence
of its jittery investors. Until that happens, we prefer to remain
Neutral on the stock over the long term.
Currently, Groupon has Zacks #3 Rank, which implies a Hold
rating in the short term.
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