Groupon Inc. (NASDAQ: GRPN) will report its third-quarter earnings Thursday after the market close. Thomson Reuters has consensus estimates of $0.01 in earnings per share and $748.76 million in revenue. In the third quarter of the previous year it had $0.02 in earnings per share and $595.06 million in revenue.
The first ever upcoming investor day in November is likely to have a strong impact on Groupon. The story behind this company is said to have “a lot of moving parts” and is not well understood on Wall Street. This investor day could seemingly clear the air and attract more investors to this company. If not, well then it may lose even more investors.
Sterne Agee’s Arvin Bhatia and Brett Strauser recently speculated that the company is trading with a deep discount compared to its peers, and that if it can focus on a few goals, it will be able to almost double its current valuation. They also said that the goals Groupon needs to focus on are growing its North America Local billings and increasing gross margins in the Goods segment by year-end. Their September call was a Buy rating with a $12 price target.
Two other analysts made calls prior to Sterne Agee. Credit Suisse reiterated a Neutral rating and moved its price target down to $6.50 from $10.00 on August 6. Deutsche Bank reiterated a Buy rating and lowered its price target to $7.00 from $8.00, also on August 6.
The 50-day moving average was acting as an overhang for Groupon, with that reading now up at $6.52. Its 200-day moving average is all the way up at $7.22.
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Investors might want to consider that options traders appear to be braced for a move of slightly more than $0.50 in either direction. That implies that the stock could rise or fall as much as almost 9%.
Shares of Groupon closed Wednesday down 3.5% at $5.79. The stock has a consensus analyst price target of $7.30 and a 52-week trading range of $5.18 to $12.42. The market cap is nearly $4 billion.
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