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Groupon, Inc. Message Board

  • stockplaza555 stockplaza555 Feb 8, 2012 8:38 PM Flag

    One time 1600% Tax Rate?. What's that?

    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!!

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    • It is ALREADY up $2 from After Hours Lows!!

      Looks like the close on this today with SHORTS covering could be close to $25!

      GRPN if you back out one time TAX set up fees, has beaten the estimates and achieved a profit it seems

      I would not be surprised if an ANALYST has upbeat comments on GRPN today or tomorrow

      GRPN likely close near $24 or $25 today if my thesis that they actually had a beat on REVENUES and EPS (without the one time TAX expense) is correct

    • 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

    • Bump -
      Upon close look, removing the one time 1600% international tax expense, did GRPN actually made EPS of 5 cents profit?

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