Groupon Tops Revenue Estimates; Names New CEO, Stock Soars (GRPN)
Groupon (NASDAQ: GRPN) released its fiscal second-quarter earnings results after the closing bell on Wednesday.
The company reported earnings per share that were in line with analysts' consensus estimates and revenue that came in above expectations. Groupon also provided sales guidance for the fiscal third-quarter, named Eric Lefkofsky as CEO, and announced a $300 million stock repurchase program. In late trade, the stock was last up almost 17 percent to $10.16.
"We significantly exceeded our operating income expectations, and delivered our strongest quarter ever in North America, due in part to accelerated billings growth of 30%," said Eric Lefkofsky, CEO of Groupon. “With two quarters on the job, I'm pleased with the progress we've made in such a short time. We continue to gain traction in mobile, with nearly 50% of our North American transactions coming from mobile in June. To date, more than 50 million people have downloaded Groupon apps worldwide.”
Fiscal Second-Quarter Results
The company reported a loss of $7.6 million or $0.01 per share, compared to net income of $28.4 million or $0.04 per share, in the year ago period.
On an adjusted basis, net income was $14.3 million or $0.02 per share, versus $31.1 million or $0.05 per share, last year. This was in-line with analysts' estimates.
Total revenue in the quarter was $608.7 million from $568.3 million a year ago. This beat Wall Street consensus revenue estimates of $606.23 million.
Q3 Guidance and Corporate Developments
Looking ahead to the third-quarter, Groupon guided for sales of $585 million to $635 million. This compares to current estimates calling for sales of $621.59 million in the fiscal third-quarter.
The company also named co-founder Eric Lefkofsky as permanent CEO and announced a $300 million share buyback program to be executed over the next two years. Ted Leonsis will become Groupon's Chairman of the Board.
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