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How Poor Results From RetailMeNot & Are Hurting Groupon

How Poor Results From RetailMeNot & Are Hurting Groupon
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Groupon Inc (NASDAQ: GRPN) is trading lower alongside steep declines in RetailMeNot Inc (NASDAQ: SALE) and Coupons.Com Inc (NYSE: COUP) following the two companies’ earnings reports.

Coupons.Com reported a quarterly loss of $0.02 per share, compared with expectations of a $0.04 per share gain.

In addition, management also offered substantially lower FY15 guidance, expecting revenues of $275 million compared with Wall Street expectations of $295.5 million.

RetailMeNot issued similar weak guidance, suggesting revenue would be $57 million to 60 million, compared with analysts’ expectations at $68 million.

Now, the Street is concerned that this will translate to Groupon’s earnings on Thursday evening. Groupon is expected to report EPS of $0.03 compared with $0.04 a year ago.

However, against this backdrop, the headline number could be overshadowed by expectations for the future.

Image credit: Rusty Clark, Flickr

Posted-In: Earnings News Short Ideas Previews Trading Ideas Best of Benzinga


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