Groupon Inc (
is set to report first quarter 2013 results on May 8. Groupon
reported fourth quarter loss of 5 cents wider than the Zacks
Consensus Estimate 2 cents. Let's see how things are shaping up
for the upcoming announcement.
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Growth Factors this Past Quarter
Although Groupon missed the Zacks Consensus Estimate, the loss
was much narrower than a loss of 8 cents reported in the year-ago
quarter. Revenues jumped approximately 30% from the year-ago
quarter due to higher gross billing. Groupon reported an
operating loss of $12.9 million, which was narrower than a loss
of $15 million in the year-ago quarter.
Groupon provided a tepid outlook for the first quarter, with
revenues forecast to increase in the range of $560 million to
$610 million (up 0% to 9%). Groupon expects operating income to
be in the range of ($10.0) million to $10.0 million for the first
The Zacks Consensus Estimate for the first quarter is a loss of 1
cent. For fiscal 2013, the estimate is pegged at earnings of 5
cents per share.
Groupon posted positive surprises in three of the four preceding
quarters with an average positive surprise of 75.0%.There were no
estimate revisions for both the first quarter and fiscal 2013
over the past 30 days. As a result, the Zacks Consensus Estimate
for both periods has remained unchanged.
The chances of a big surprise are unlikely given the lack of
catalysts during the quarter. The stock carries a Zacks Rank #2
We caution against stocks with Zacks Ranks #4 and #5 (Sell rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revisions momentum.
Other Stocks to Consider
Our model states that a stock needs to have both a positive Zacks
Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank #1, #2 or #3 to beat earnings estimates. You
could, therefore, consider stocks like:
Hasbro Inc (
, Earnings ESP of +3.03% and Zacks Rank #2 (Buy)
International Game Technology (
, Earning ESP of +3.23% and Zacks Rank #2 (Buy)
Webcom Group Inc (
, Earnings ESP of +2.38% and Zacks Rank #2 (Buy)