Groupon posts bigger 2Q loss, earnings outlook falls short of Street views

MarketsAssociated Press

Groupon Inc. (GRPN) on Tuesday reported a bigger loss in its second quarter, weighed down by acquisition-related costs and other one-time expenses.

The results matched analysts' expectations, but the online daily deal service's earnings outlook for the current quarter fell short of Wall Street estimates.

Continue Reading Below

The Chicago-based company's shares tumbled more than 15 percent in after-market trading.

Groupon posted a loss of $22.9 million, or 3 cents per share, compared with a loss of $7.6 million, or 1 cent per share, in the same quarter a year earlier.

Earnings, adjusted for stock option expense and amortization costs, came to 1 cent per share. The average estimate of analysts surveyed by Zacks Investment Research was for earnings of 1 cent per share.

The company said revenue climbed 23 percent to $751.6 million from $608.7 million in the same quarter a year ago, and missed Wall Street forecasts. Analysts expected $760.7 million, according to Zacks.

Groupon expects adjusted earnings per share to range between breakeven and 2 cents per share in the third quarter. Analysts polled by FactSet were projecting adjusted earnings of 3 cents per share.

Revenue in the third quarter should range from $720 million to $770 million, Groupon said. That outlook is in line with analysts' forecast of $759.7 million in revenue.

Groupon shares slid $1.07 to $5.99 in aftermarket trading. The stock ended regular trading up 5 cents to $7.07. It's down nearly 40 percent so far this year.