One of February’s biggest winner stock has been Groupon Inc (NASDAQ:GRPN), jumping over 30% after posting impressive quarterly report. Revenue came in at $934.9 million for the reported fourth quarter, up 1.9% for the company in daily deals.
The buzz
Recording top-line growth of less than 2% may not seem impressive, but it’s entirely relative. Groupon’s been receding out of poorly performing foreign markets, so the quarter is essentially a combination of a 5% upsurge in North America more than balancing a dip in global sales. Analysts were expecting for a slight YoY drop in revenue, so any quantum of growth would go on to surpass expectations.
Gross billings came at $1.7 billion, which were almost flat with $1.71 billion, in the same period a year ago. The recently bought LivingSocial was almost enough to offset the decline overseas. Net loss from continuing operations in the fourth quarter widened, however adjusted EBITDA improved. Groupon reported that adjusted net profit came at $0.07 a share compared to Wall Street projections of $0.02 a share. It was company’s first adjusted profit in 2 years.
One street analyst left smarting after the blowout report of Aaron Turner at Wedbush. The target price of GRPN stock is lowered to $4.50 from $6.50, two days before the company would go on to offer its stock-popping move. He went on to hold ‘Outperform’ rating, but shaved price goal on worries that the quarterly report did not show indications of a reversal. Instead of eating crow subsequent to Groupon’s report, Turner revised his stance.
Samuel Kemp, an analyst at Piper Jaffray, didn’t analyze things that way. He has maintained ‘Overweight’ rating and a price target of $6.50. Kemp appreciated how Groupon’s latest leaner and well-directed business model are working. The company’s guidance for 2017 was promising, and he expects the improvement ongoing until next year.
