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Grubhub (GRUB) to Report Q3 Earnings: What's in the Cards?
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Grubhub is set to report third-quarter 2019 results on Oct 29.
For the quarter, the company expects revenues between $320 million and $340 million. The Zacks Consensus Estimate for revenues currently stands at $330.2 million, which indicates growth of almost 33.6% from the year-ago quarter’s reported figure.
Moreover, the consensus mark for earnings is pegged at 27 cents, unchanged over the past 30 days, implying a decline of 40% from the year-ago quarter’s reported figure.
Notably, the company’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average negative surprise being 3.1%.
In the last reported quarter, Grubhub’s adjusted earnings of 27 cents per share missed the consensus mark by 3 cents and plunged 46% on a year-over-year basis.
However, revenues surged 35.6% year over year to $325.1 million, which beat the Zacks Consensus Estimate of $318 million.
Let’s see how things are shaping up prior to this announcement.
Key Factors to Consider
Grubhub is facing significant competition in the U.S. online food delivery market from expanding services from the likes of DoorDash, Uber (UBER - Free Report) arm UBER Eats and Postmates, which is expected to have impacted its market share in the third quarter.
Per the latest report by analytics firm Second Measure, Grubhub’s share of the U.S. consumers’ meal delivery sales in September was 30%, lower than DoorDash’s 34%. Second Measure’s data do not include sales from Grubhub’s latest acquisitions — Tapingo and LevelUp.
In August, the company’s share of the U.S. consumers’ meal delivery sales was 32%, lower than DoorDash’s 36%.
The stiff competition is expected to have negatively impacted Grubhub’s Daily Average Grubs (DAGs), which declined sequentially in the second quarter, a trend that most likely continued in the third quarter of 2019.
Moreover, the bottom line is expected to reflect the negative impact of higher spending on marketing in the to-be-reported quarter.
Nevertheless, the rapidly growing active diner base, driven by acquisitions and partnerships with the likes of McDonalds’, Yum Brands!, Shake Shack, Blue Apron, Dunkin' Brands Group, is expected to have aided the company’s top line in the to-be-reported quarter.
Grubhub is also expected to have benefited from its efforts to enhance the delivery network and strengthen alliance with new, quality-focused restaurant partners, which might reflect on its gross food sales.
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.
Grubhub has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%, which makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a couple of companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:
Advanced Micro Devices (AMD - Free Report) has an Earnings ESP of +6.54% and a Zacks Rank #2.
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.
Image: Bigstock
Grubhub (GRUB) to Report Q3 Earnings: What's in the Cards?
Grubhub is set to report third-quarter 2019 results on Oct 29.
For the quarter, the company expects revenues between $320 million and $340 million. The Zacks Consensus Estimate for revenues currently stands at $330.2 million, which indicates growth of almost 33.6% from the year-ago quarter’s reported figure.
Moreover, the consensus mark for earnings is pegged at 27 cents, unchanged over the past 30 days, implying a decline of 40% from the year-ago quarter’s reported figure.
Notably, the company’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average negative surprise being 3.1%.
In the last reported quarter, Grubhub’s adjusted earnings of 27 cents per share missed the consensus mark by 3 cents and plunged 46% on a year-over-year basis.
However, revenues surged 35.6% year over year to $325.1 million, which beat the Zacks Consensus Estimate of $318 million.
Grubhub Inc. Price and EPS Surprise
Grubhub Inc. price-eps-surprise | Grubhub Inc. Quote
Let’s see how things are shaping up prior to this announcement.
Key Factors to Consider
Grubhub is facing significant competition in the U.S. online food delivery market from expanding services from the likes of DoorDash, Uber (UBER - Free Report) arm UBER Eats and Postmates, which is expected to have impacted its market share in the third quarter.
Per the latest report by analytics firm Second Measure, Grubhub’s share of the U.S. consumers’ meal delivery sales in September was 30%, lower than DoorDash’s 34%. Second Measure’s data do not include sales from Grubhub’s latest acquisitions — Tapingo and LevelUp.
In August, the company’s share of the U.S. consumers’ meal delivery sales was 32%, lower than DoorDash’s 36%.
The stiff competition is expected to have negatively impacted Grubhub’s Daily Average Grubs (DAGs), which declined sequentially in the second quarter, a trend that most likely continued in the third quarter of 2019.
Moreover, the bottom line is expected to reflect the negative impact of higher spending on marketing in the to-be-reported quarter.
Nevertheless, the rapidly growing active diner base, driven by acquisitions and partnerships with the likes of McDonalds’, Yum Brands!, Shake Shack, Blue Apron, Dunkin' Brands Group, is expected to have aided the company’s top line in the to-be-reported quarter.
Grubhub is also expected to have benefited from its efforts to enhance the delivery network and strengthen alliance with new, quality-focused restaurant partners, which might reflect on its gross food sales.
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.
Grubhub has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%, which makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a couple of companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:
Advanced Energy Industries (AEIS - Free Report) has an Earnings ESP of +4.17% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Advanced Micro Devices (AMD - Free Report) has an Earnings ESP of +6.54% and a Zacks Rank #2.
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>>