It seems they incurred a one time whopping 1600% international tax rate?. Not clear what that was all about and why GRPN incurred an absurd 1600% tax rates.
Companies like Google / Microsoft / Apple pay far less international taxes in low tax zones of less than 15% or sometimes no taxes at all.
If this one time GRPN international tax expense is removed (as it is a one time stuff if I understood correctly?) - did GRPN beat the EPS estimates of 3 cents?. It looks like without the one time TAX expenses related to international set up, the company would have made a profit of approx 7 - 2 = 5 cents of profit?? which would have been a beat on expectations
They already beat the revenues.
For any retail company - a sequential beat from Q4 to Q1 is huge. Almost all retail companies have significantly downward Q1 over Q4 (Q4 is the shopping season time)!
Can anybody intelligent with financial analysis throw their 2 cents here!!
I looked at the earnings metrics - they all bode well
Good FCF and operating income. Mind blowing revenue metrics (especially gross billings of $4 billion). Except for the one time TAX expense of 1600%, the company had profits it seems.
Once the NOISE settles down, the stock should trade past $25 at least in a month or two.
At 10x $4 billion gross billings in 2011, the stock could achieve a market cap of $40 billion provided they grow at least 100% clip YoY!.
EPS should start growing soon once they reduce the marketing and other operating expenses as a percent of overall revenue (which is growing fast)
But until the NOISE settles down it is better to stay away from the STOCK for now. I shall await a price below $20 or (even $15) before loading it up for April quarter. My guess is that the Q1 will be a good one as the insiders also need to sell in May or June