GrubHub's Stock Slumps After Profit And Sales Miss Expectations

By Tomi Kilgore Markets MarketWatch Pulse

Shares of GrubHub Inc. dropped 3.4% in premarket trade Wednesday, after the online takeout food-ordering company missed fourth-quarter profit and sales expectations. Net earnings rose to $13.6 million, or 16 cents a share, from $11.3 million, or 13 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 23 cents, below the FactSet consensus of 25 cents. Revenue rose 38% to $137.5 million, but fell short of the FactSet consensus of $137.6 million. Active diners rose 215 to 8.2 million, while daily average grubs (DAGs) grew 21% to 292,500. The company expects first-quarter revenue of $148 million to $156 million, surrounding the FactSet consensus of $150.8 million. "Fueled by data-driven product enhancements, substantial strides in delivery, and a refreshed marketing approach, we exited the year growing DAGs faster than we did a year ago," said Chief Executive Matt Maloney. The stock has more than doubled over the past 12 months through Tuesday, while the S&P 500 has climbed 24%.

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