Can Groupon Get Its Earnings Right?

Retail

Published: February 12, 2015 12:20 pm

Last Updated: February 12, 2015 12:22 pm

Groupon Inc. (NASDAQ: GRPN) is set to report its earnings Thursday after the markets close. Thomson Reuters has consensus estimates of $0.03 in earnings per share (EPS) and $908.38 million in revenue. In the fourth quarter of the previous year, the company posted $0.04 in EPS and revenue of $768.45 million.

At the beginning of February, Groupon was raised to Buy, all the way up from a Sell rating, at a boutique firm named Ascendiant Capital Markets. Shares tried to rally 2% initially following the call, but the realization that Ascendiant probably does not create millions on millions in share volume of new stock purchases based on its research kept the stock from running handily.

It is worth mentioning that coupon stocks were hit hard Tuesday morning following less than stellar earnings reports. In a business where cutting costs is the key, it would appear that both Coupons.com Inc. (NYSE: COUP) and RetailMeNot Inc. (NASDAQ: SALE) suffered on weaker-than-expected guidance.

24/7 Wall St has collected a few analyst calls on Groupon from the month of February so far:

Deutsche Bank has a Buy rating with a price target of $8.00.
Brean Capital has a Buy rating with an $11.00 price target.
B. Riley reiterated a Buy rating with a $9.50 price target.

The 50-day moving average is $7.50, and it is currently being tested. Groupon shares bounced off this moving average back in mid-December and then crossed under it in mid-January. At the same time, the 200-day moving average has remained under Groupon shares since their massive jump at the tail end of October. Shares bounced off the 200-day moving average twice since then, once in mid-December and then in late-January.

Shares of Groupon traded up 0.5% at $7.62 at midday Thursday. The stock has a consensus analyst price target of $8.61 and a 52-week trading range of $5.18 to $10.88.

ALSO READ: Companies Cutting the Most Jobs

The Average American Is Losing Momentum On Their Savings Every Day (Sponsor)

If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4%¹ today. Checking accounts are even worse.

But there is good news. To win qualified customers, some accounts are paying more than 7x the national average. That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn a $200 bonus and up to 7X the national average with qualifying deposits. Terms apply. Member, FDIC.

Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.

¹https://www.fdic.gov/national-rates-and-rate-caps