Groupon (NASDAQ:GRPN) shares plunged 8.18% in Thursday's trading session following the release of its third-quarter earnings report, which revealed a significant miss on earnings per share (EPS) estimates. The e-commerce marketplace's disappointing results have sparked concerns among investors about the company's financial health and growth prospects.
The company reported a quarterly loss of $(2.92) per share, falling drastically short of analyst expectations of $0.04 per share. This represents a staggering 8442.86% miss compared to estimates and a 984.85% decrease from the same period last year when Groupon posted earnings of $0.33 per share. The magnitude of this earnings miss is likely the primary driver behind the sharp stock decline.
Despite the earnings disappointment, Groupon's revenue showed a slight improvement. The company reported quarterly sales of $122.825 million, marginally beating the analyst consensus estimate of $121.986 million by 0.69%. This figure also represents a 7.29% increase over sales of $114.479 million in the same period last year. However, the modest revenue beat was overshadowed by the substantial earnings shortfall, leading to the negative market reaction. Investors will be closely watching Groupon's future performance to see if the company can improve its profitability and align with market expectations.
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