Groupon (NASDAQ:GRPN) earnings for the e-commerce company’s fourth quarter of 2019 have GRPN stock moving after-hours Tuesday. The company reported adjusted earnings per share (EPS) of 7 cents on revenue of $612.32 million. These both fail to reach Wall Street’s estimates of 15 cents per share and revenue of $709.35 million.
Here’s what else is worth mentioning from the most recent Groupon earnings report.
- Adjusted EPS is down 30% from the 10 cents reported during the fourth quarter of 2018.
- Revenue is sitting 23.45% lower than the $799.93 million reported in the same period of the year prior.
- Operating income of $40.11 million is a 35.18% drop YoY from $61.88 million.
- The Groupon earnings report also includes a net income of $79.64 million.
- That’s a 59.73% improvement over the company’s net income of $49.86 million during the same time last year.
Rich Williams, CEO of Groupon, said this about the GRPN stock earnings report:
“We did not deliver the financial performance we expected during the fourth quarter and we recognize we must move swiftly to put Groupon back on a growth trajectory. We believe our plan to exit Goods will allow us to dedicate the focus and resources necessary to build a winning position as the purchase of experiences continues to migrate online.”
The Groupon earnings report also reveals plans for a stock split. The plan has been approved by the company’s Board of Directors, and will be submitted for investor approval during its June 2020 Annual Meeting. The split is planned to be between 1-for-10 and 1-for-12.
GRPN stock trading was halted when markets closed on Tuesday.
As of this writing, William White did not hold a position in any of the aforementioned securities.