Grubhub (GRUB) Q3 Earnings Meet, Shares Fall On Grim Q4 View
Zacks Investment Research | Oct 29, 2019 11:58PM ET
Grubhub (NYSE:GRUB) shares plunged 43.3% to close at $33.11 on Oct 29, following dismal third-quarter 2019 results. The company provided weak fourth-quarter guidance citing lower order expectations amid intensifying competition in the online food delivery industry.
The company reported third-quarter 2019 earnings of 27 cents per share, which was in line with the Zacks Consensus Estimate. However, the bottom line slumped 40% on a year-over-year basis.
The decline can be attributed to higher investments in marketing and advertisements that fully offset strong top-line growth.
Revenues surged 30.3% year over year to $322.1 million, which lagged the consensus mark of $330 million.
Capture rate, net revenues divided by gross food sales, was 23% and included nearly 110 bps of technology-oriented revenues from LevelUp and Tapingo.
However, Grubhub stated that stiff competition and lower frequency as well as retention rates of new diners hurt overall results by more than 300 basis points (bps).
Grubhub Inc. Price, Consensus and EPS Surprise
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