2 Hot Earnings To Watch On Tuesday: Groupon And Tesla

• Groupon Inc GRPN and Tesla Motors Inc TSLA are scheduled to announce their third-quarter financial results after the market closes on Tuesday.
• Both companies are expected to deliver substantial year-over-year declines in earnings.

Groupon

In the third quarter of 2014, Groupon reported earnings of $0.03 per share on revenue of $757.1 million, up 50 percent year-over-year. However, for the third quarter of 2015, expectations are quite low.

Management guided for earnings between $0.00 and $0.02 per share on revenue in the $700 million to $750 million range. Both the Street and the crowd are anticipating earnings in the midpoint of the guidance, at $0.01 per share, on consensus revenue of $729.71 million and $729.04 million, respectively.

It should be noted, however, that the discount online marketplace operator has tended to beat estimates over the past couple of years.

Tesla

According to Estimize, Tesla is expected to deliver its weakest quarter, in terms of earnings, in the past couple of years. The Street believes the carmaker will retrieve a net loss of ($0.53) per share on sales of $1.214 billion. The crowd is slightly less bearish, and models a consensus net loss of ($0.49) per share on revenue of $1.234 billion.

These estimates compare to the earnings of $0.02 per share on revenue of $932.3 million reported a year ago, and to a net loss of ($0.48) per share on revenue of $1.197 billion registered last quarter.

Similar to Groupon’s case, Tesla has tended to outperform the Street’s expectations over the past eight quarters.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.