Groupon (GRPN) Slumps In Pre-market Session

Shares of Groupon Inc. (GRPN) are down almost 13% at $8.94 in the pre-market session after briefly surging 18% on Thursday.

The online deals company, which is headquartered in Chicago, reported revenue and earnings per share that topped consensus.

Revenues in the three months ended in December jumped by a fifth on y/y basis to $768.4 million, yielding adjusted EPS of $0.04, compared to the consensus estimate of EPS of $0.02 on revenues of $718.04 million.

However, Groupon said profits were likely to drop again in the current quarter. The company said it sees revenue in a range of $710 million to $760 million, and a net loss of 2 cents to 4 cents per share.

Gross profit in the quarter was 49%, down 7% from a year earlier.

The comments rattled Groupon investors who are currently driving the ticker at the lower end of a 1-month range.

Update: The shares have now deepened their decline, dropping $16.24, at $8.61. At that pps, next support is at $8.30 and then at $7.97. RBC Capital downgraded the shares to “Underperform” form “Sector perform”. The firm also cut its price target to $7 from $11.

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