GrubHub's Stock Soars After Profit And Sales Rise Above Expectations

Shares of GrubHub Inc. soared 13% in premarket trade Thursday toward a 2 1/2-month high, after the online food-ordering company reported first-quarter results beat expectations. Net income rose to $17.7 million, or 20 cents a share, from $9.9 million, or 12 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came in at 29 cents, above the FactSet consensus of 24 cents. Revenue increased 39% to $156.1 million from $112.2 million, beating the FactSet consensus of $153.0 million. Active diners increased 26% to 8.75 million, while daily average grubs grew 21% to 324,600. Looking ahead, the company expects second-quarter revenue of $153 million to $161 million, surrounding the FactSet consensus of $157.9 million. The stock has slumped 6.9% year to date through Wednesday, while the S&P 500 has gained 6.6%.