Groupon Q3 Profit Up, But Stock Down 8% On Revenue Miss

(RTTNews) - Groupon Inc. (GRPN) Wednesday reported a surge in third-quarter profit, however, the company's shares slipped 8% after its revenues fell short of Wall Street estimates.

Chicago, Illinois-based Groupon's third-quarter profit was $44.6 million or $0.08 per share, up from last year's profit of $0.1 million or break-even per share last year.

Revenues for the quarter were $592.9 million, down 7% from $634.5 million last year.

Analysts polled by Thomson Reuters expected earnings of $0.02 per share on revenues of $601.89 million.

Groupon said the revenue decline reflect lower customer traffic and the company continued to focus on revenue generation that maximizes long-term gross profit.

"We delivered a profitable quarter and continued our established track record of Adjusted EBITDA growth," said Groupon CEO Rich Williams. "As we celebrate our 10th birthday, we're excited to keep advancing our key strategic priorities to continue to grow and develop our marketplace as the daily habit in local commerce."

For the full year 2018, Groupon continues to expect adjusted EBITDA to be between $280 million and $290 million.

GRPN is currently trading at $2.97, down $0.29 or 8.90%, on the Nasdaq.