GrubHub Trades Lower After Q1 Print

Online food takeout and delivery service GrubHub Inc GRUB announced first-quarter 2018 earnings results before the open Tuesday. The Chicago-based company reported revenue and non-GAAP earnings per share beats, but gross food sales and  the number of "Daily Average Grubs" fell short. 

What Happened

With reported revenue of $232.6 million, GrubHub managed to beat the consensus estimate of $229.3 million and recorded a 49-percent increase from $156.1 million one year ago. Its non-GAAP EPS were 52 cents for Q1, topping market expectations of 39 cents per share. 

CEO Matt Maloney said he's pleased with the company's Q1 execution. GrubHub is making meaningful progress toward its most significant goals for 2018, Maloney said.

"GrubHub has already launched dozens of new delivery markets, completed its Yelp Inc YELP and Eat24 integrations a quarter earlier than expected and attracted a record quarterly number of organic new diners." 

Why It's Important

Strong revenue and EPS figures were apparently outweighed by misses on key metrics, judging by the drop in GrubHub shares after the quarterly report. The stock was down 9.16 percent at the time of publication Tuesday. 

The company reported 436,900 "Daily Average Grubs" against a consensus figure of 442,480. Gross food sales of $1.2 billion were also below consensus, while the active diners count of 15.1 million was roughly in-line with expectations. 

What's Next

GrubHub guided for second-quarter revenue in a range of $228 to $236 million and full-year revenue in a range of $930 to $965 million. The consensus estimate for Q2 revenue is $229.3 million. 

Related Links: 

GrubHub Leads The Online Restaurant And Delivery Sector, Says KeyBanc Analyst 

After Recommending GrubHub For Over A Year, Morgan Stanley Takes Neutral Stance 

Photo courtesy of GrubHub.