Groupon Falls 11% After Weak Earnings Outlook

may have reported an earnings beat this afternoon, but the company's fourth quarter expectations left a lot to be desired. Groupon reported a Q3 EPS of $0.02 versus the Street estimate of $0.01. Earnings per share were down 33 percent from the year-ago period. Revenue came in at $595.1 million -- a bit below the $616.13 million estimate. Sales were up five percent year-over-year. "Our Local business showed continued strength in the quarter, particularly in North America," Groupon CEO Eric Lefkofsky said in a

. "Mobile adoption continued to increase in Q3, reflected in our record 9 million app downloads. We're pleased with our progress, but we still have work to do as we transform the business from our daily deal email roots to a full ecommerce marketplace." Groupon also announced that it has signed an agreement to acquire Ticket Monster, a leading ecommerce company in Korea. "Ticket Monster has been successful building a mobile commerce business in one of the largest markets in the world," Lefkofsky added. "It will serve as the cornerstone of our Asian business, bringing scale and ecommerce expertise to that region." Looking ahead to the fourth quarter, Groupon anticipates that its EPS will fall within the $0.00 to $0.02 range. Wall Street had higher expectations and thought that Groupon would report an EPS of $0.06. Fourth quarter sales are expected to be between $690 million and $740 million versus the Street estimate of $723.4 million. Shares of Groupon have fallen more than 11 percent in after hours trading. The company closed down more than five percent. Year-to-date, Groupon was up more than 101 percent as of the market close on Wednesday, November 6. Disclosure: