Groupon shares sink 15% after earnings disappoint
Shares in deals-site Groupon sank late Tuesday after a disappointing second-quarter report and forecast.
The company GRPN reported a loss of $22.9 million, or 3 cents a share, compared to a loss of $7.8 million, or one cent a share, in the same period a year ago. Sales rose to $751.6 million, up from $608.7 million a year ago.
Earnings per share excluding some items was 1 cent per share, in line with views. But sales fell short of the $761.80 million forecast by analysts.
Shares were down about 15 percent to around $6 in after hours trading.
For the third quarter, the company forecast revenue of between $720 million and $770 million and projected earnings of as much as 2 cents a share. But analysts had been looking for an earnings projection of 3 cents a share.
After dipping to a six-month low of $5.33 in May, shares of Groupon had slowly recovered, closing Monday above $7.
Source: Usatoday
