Today, after market close, Groupon (NASDAQ:GRPN) will release its latest quarterly results. After three straight quarters of earnings letdowns, options traders are counting on Groupon shares to surge after the next earnings announcement. Trading in $6 call options, far out of the money, accounted for about 40 percent of the total volume in the company's options on Monday, indicating that investors are looking for a movement of at least 15 percent following the earnings reveal, while also limiting their risk if the company takes a plunge.
Groupon became famous for its popular daily deals, which allowed shoppers to take advantage of huge savings retailers. But a few months after the company's IPO, that niche lost its popularity, forcing the company to revamp and restructure as I discussed in my previous article, entitled 'Does Groupon's Stock Jump Have Cushioning?'. Regardless of worries about the company's future, Groupon's stock has gained 35% in the past 6 months and this earnings announcement will back up the validity of that growth. Further, the stock has been hit with strong volatility, falling 7% over this past weekend.
For this quarter, analysts are expecting an EPS of $0.03, which is down almost 50% for last year's estimate, and a Revenue Estimate of $588.92 million, which is also down-- but only by about 6%. But most importantly, investors are looking for new ventures the company's management plans to take on to increase its infrastructure.
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