How low can Groupon (GRPN) shares go? The down-and-out stock is testing its limits today after another disappointing round of earnings.
Shares of the online daily deals company were down nearly 18% after hours to dip back near its all-time low. At roughly $6.20 a share, Groupon is trading for roughly one-third of the $20 IPO price it went public at last November.
Of course, the after-hours pullback is really just a correction after the stock gained 13.5% since last Thursday. Really, Groupon’s second-quarter earnings weren’t all that bad – at least not when compared to past quarters.
For the first time in its history, the company turned a profit. Net income of $28.4 million was a vast improvement from the $107.4 million in losses Groupon suffered in the same quarter a year ago.
Analysts were expecting profits this time. But the four cents a share the company made was a penny better than the three cents per share analysts were projecting.
However, revenue of $568 million fell just shy of the $575 million analysts were expecting. Revenue guidance for the current quarter is also a tad short of what analysts were looking for.
So those misses helped drive Groupon shares down.
All in all, however, Groupon’s earnings report featured more positives than negatives. It wasn’t enough to sustain the shares’ two-day run. But it’s at least an encouraging sign for a beaten down tech stock.
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