Grubhub (GRUB, $72.56) misses Q2 earnings expectations, but beats revenue forecasts

Grubhub shares slumped on Tuesday, after the online food ordering & delivery company reported adjusted second-quarter earnings that missed analysts' estimates.

The company’s earnings came in at 1 cent a share in the second quarter, down -96% from 33 cents a share in the year-earlier quarter. Consensus estimates among analysts surveyed by FactSet was 6 cents a share.

 Grubhub reported adjusted net income of 27 cents a share, also lower than the 30 cents expected by analysts. Adjusted earnings per share was 50 cents a year earlier.

Total costs and expenses rose +55.3% to $318.9 million.

However, the company’s revenue for the quarter surged +36% to $325.1 million, beating analysts’ estimate of $318.2 million.

Grubhub said that active users of its website increased +30% to 20.3 million, and daily average orders went up +16% to almost 489,000.

Looking ahead, the company expects revenue of $320 million to $340 million for the third quarter, compared to FactSet's consensus expectation of $331.7 million.

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Sergey Savastiouk|Expert

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.