Examining the Future: Groupon's Earnings Outlook

Groupon GRPN is preparing to release its quarterly earnings on Wednesday, 2025-05-07. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Groupon to report an earnings per share (EPS) of $-0.11.

Groupon bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Overview of Past Earnings

The company's EPS missed by $1.41 in the last quarter, leading to a 43.09% increase in the share price on the following day.

Here's a look at Groupon's past performance and the resulting price change:

Stock Performance

Shares of Groupon were trading at $16.78 as of May 05. Over the last 52-week period, shares are up 56.76%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Opinions on Groupon

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Groupon.

Analysts have given Groupon a total of 3 ratings, with the consensus rating being Buy. The average one-year price target is $17.33, indicating a potential 3.28% upside.

Comparing Ratings with Peers

The analysis below examines the analyst ratings and average 1-year price targets of and Kohl's, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Kohl's, with an average 1-year price target of $8.46, suggesting a potential 49.58% downside.

Comprehensive Peer Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for and Kohl's, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Groupon ranks lower in revenue growth compared to its peers. It also has a negative gross profit margin, indicating lower profitability. Additionally, Groupon has a significantly negative return on equity, suggesting lower returns for shareholders.

Get to Know Groupon Better

Groupon Inc acts as the middleman between consumers and merchants, offering products and services at discounts via its online store. It offers consumers daily deals from local merchants. The company's operations are organized into two segments: North America and International. The company generates the majority of its revenue from North America. The company generates revenue from transactions during which the company generates commissions by selling goods or services on behalf of third-party merchants. Revenue also includes commissions the company earn when customers make purchases with retailers using digital coupons accessed through its digital properties.

Key Indicators: Groupon's Financial Health

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Challenges: Groupon's revenue growth over 3 months faced difficulties. As of 31 December, 2024, the company experienced a decline of approximately -5.33%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: Groupon's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -38.85%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Groupon's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -125.35%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -8.73%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 6.2, caution is advised due to increased financial risk.

To track all earnings releases for Groupon visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.