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GrubHub (GRUB) Set to Report Q3 Earnings: What's in Store?
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GrubHub is set to report third-quarter 2018 results on Oct 25.
In the trailing four quarters, the company delivered an average positive earnings surprise of 25.6%, beating estimates in each. In the last reported quarter (second-quarter 2018), the company’s adjusted earnings outpaced the Zacks Consensus Estimate by nine cents.
Moreover, GrubHub’s top line has beaten the consensus mark in all of the trailing four quarters. In second-quarter 2018, revenues came in at $239.7 million, beating the Zacks Consensus Estimate of $233 million, and surged 51% from the year-ago quarter.
The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $238.2 million, which reflects year-over-year growth of almost 46.1%. Moreover, the consensus mark for earnings has been steady at 40 cents per share over the last seven days.
Let’s see how things are shaping up prior to this announcement.
Key Factors to Consider
GrubHub is expected to benefit from its rapidly growing active diner base and strengthening delivery business. Acquisitions and partnerships are anticipated to help it rapidly penetrate the expanding food takeout market in the United States.
Buyouts, including Yelp’s (YELP - Free Report) Eat24, OrderUp and Boston-based Foodler, are helping the company acquire new diners. As of Jun 30, 2018, active diners were 15.6 million, which surged almost 70% from the year-ago quarter. In the second quarter, the company added 0.5 million of active diners.
Additionally, collaborations with Yelp, Yum! Brands (YUM - Free Report) and Groupon have made GrubHub the preferred partner for online ordering from restaurants on these platforms. The $200 million investment from Yum! Brands, which also made GrubHub the exclusive delivery partner of KFC and Taco Bell, has further strengthened the company’s market presence.
However, Grubhub’s margins are likely to be under pressure due to increasing expenses for planned expansion into new delivery markets. The company launched Grubhub Delivery services in more than 70 new markets at the end of second-quarter 2018.
Moreover, intensifying competition from Uber Eats in the United States is a major concern for GrubHub.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has a good chance of beating estimates. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.
GrubHub has a Zacks Rank #4 and an Earnings ESP of -4.55%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
A Stock to Consider
Here is a stock you may consider as our proven model shows that it has the right combination of elements to post an earnings beat this quarter.
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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GrubHub (GRUB) Set to Report Q3 Earnings: What's in Store?
GrubHub is set to report third-quarter 2018 results on Oct 25.
In the trailing four quarters, the company delivered an average positive earnings surprise of 25.6%, beating estimates in each. In the last reported quarter (second-quarter 2018), the company’s adjusted earnings outpaced the Zacks Consensus Estimate by nine cents.
Moreover, GrubHub’s top line has beaten the consensus mark in all of the trailing four quarters. In second-quarter 2018, revenues came in at $239.7 million, beating the Zacks Consensus Estimate of $233 million, and surged 51% from the year-ago quarter.
The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $238.2 million, which reflects year-over-year growth of almost 46.1%. Moreover, the consensus mark for earnings has been steady at 40 cents per share over the last seven days.
Let’s see how things are shaping up prior to this announcement.
Key Factors to Consider
GrubHub is expected to benefit from its rapidly growing active diner base and strengthening delivery business. Acquisitions and partnerships are anticipated to help it rapidly penetrate the expanding food takeout market in the United States.
GrubHub Inc. Price and EPS Surprise
GrubHub Inc. Price and EPS Surprise | GrubHub Inc. Quote
Buyouts, including Yelp’s (YELP - Free Report) Eat24, OrderUp and Boston-based Foodler, are helping the company acquire new diners. As of Jun 30, 2018, active diners were 15.6 million, which surged almost 70% from the year-ago quarter. In the second quarter, the company added 0.5 million of active diners.
Additionally, collaborations with Yelp, Yum! Brands (YUM - Free Report) and Groupon have made GrubHub the preferred partner for online ordering from restaurants on these platforms. The $200 million investment from Yum! Brands, which also made GrubHub the exclusive delivery partner of KFC and Taco Bell, has further strengthened the company’s market presence.
However, Grubhub’s margins are likely to be under pressure due to increasing expenses for planned expansion into new delivery markets. The company launched Grubhub Delivery services in more than 70 new markets at the end of second-quarter 2018.
Moreover, intensifying competition from Uber Eats in the United States is a major concern for GrubHub.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has a good chance of beating estimates. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.
GrubHub has a Zacks Rank #4 and an Earnings ESP of -4.55%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
A Stock to Consider
Here is a stock you may consider as our proven model shows that it has the right combination of elements to post an earnings beat this quarter.
Amazon (AMZN - Free Report) has an Earnings ESP of +6.56% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here. The company is also set to report on Oct 25.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>