Groupon Third Quarter Earnings Sneak Peek

Groupon Inc (NASDAQ:GRPN) will unveil its latest earnings on Thursday, November 8, 2012.

Groupon Inc Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net loss of one cent per share, a narrower loss from the year-earlier quarter net loss of 20 cents. During the past three months, the average estimate has moved down from breaking even. Between one and three months ago, the average estimate moved down. It has been unchanged at a loss of one cent during the last month. For the year, analysts are projecting net income of 2 cents per share, a spike from a loss of 98 cents last year.

Past Earnings Performance: The company is looking to beat analyst estimates for the third quarter in a row. Last quarter, it beat estimates with profit of 4 cents per share against the mean estimate of 2 cents. In the prior quarter, the company reported net loss of 2 cents.

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Analyst Ratings: There are mostly holds on the stock with 15 of 22 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.27 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.3 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 3.2% to $1.1 billion while assets rose 1.1% to $1.4 billion.

Key Stats:

Heading into this earnings season, the company is looking to build on good signs from last quarter. The company reported losses in the fourth quarter of the last fiscal year and the first quarter, but finished in the black with income of $32.3 million in the second.

A Look Back: In the second quarter, profit remained level at $32.3 million (4 cents a share) from the year earlier, beating analyst estimates. Revenue remained stable at $568.3 million.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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