Groupon Trades Down 26% After Q2 Results

Online daily deals company Groupon (NASDAQ: GRPN) released its second-quarter earnings results after the closing bell on Monday. During after-hours trading, the stock plunged in the wake of the report. Additional damage plagued Groupon during Tuesday's regular trading session, when the stock continued to plummet. In mid-day trade, the stock was trading down more than 26 percent to $5.53.

The company reported earnings per share that were above analysts' consensus estimate, but revenues which were well below the consensus expectation. Looking ahead, Groupon also provided a wide range of revenue outcomes for the third quarter, which also appeared to spook investors.

For second-quarter 2012, the company reported net income of $28.4 million, or $0.04 per share, compared to a net loss of $107.4 million, or $0.35 per share in the year ago period.

On an adjusted basis, earnings were $53.8 million, or $0.08 per share compared to a net loss of $68.7 million, or $0.23 per share in last year's corresponding quarter. This beat analysts' consensus EPS estimate of $0.03 by $0.05.

Revenues in the quarter were up 45 percent year-over-year to $568.3 million versus $392.6 million last year. On an adjusted basis, revenue growth would have been up 53 percent year-over-year. These revenue results missed the Wall Street consensus expectation of $573.13 million.

Looking ahead, Groupon said it expects third-quarter revenues between $580 million and $620 million. This compared to analysts' consensus revenue expectation of $604.49 million.

"We had a solid quarter despite challenges in Europe and continued investment in technology and infrastructure," said Andrew Mason, CEO of Groupon. "We've deepened our relationships with a growing base of merchants and customers worldwide, demonstrating progress as we work to unlock the opportunity in local commerce."