GrubHub Inc (GRUB) Shares Surge on Earnings Beat, Guidance

Advertisement

GrubHub Inc (NYSE:GRUB) unveiled its quarterly earnings results Wednesday.

GrubHub Inc (GRUB) The restaurant ordering platform said it sold $867 million worth of food during its third quarter, reaching 9.81 million customers. The figure was an 18% improvement compared to the year-ago period, while diners surged 28% year-over-year.

The company’s revenue came in at $163 million, a 32% jump compared to the year-ago quarter. Analysts were calling for revenue of $159.7 million, according to Thomson Reuters.

Profit came in at $13 million, or 15 cents per share, which was a 1.5% decline year-over-year. On an adjusted basis, GrubHub earned 28 cents per share, topping the consensus estimate of 24 cents per share, per Thomson Reuters.

One of the company’s main competitors is Uber, which has had a successful partnership with various restaurant chains through its UberEats initiative.

For its fourth quarter, GrubHub sees revenue of $197 million to $205 million, while analysts predict the company will bring in $183.3 million. On an adjusted basis, the company forecasts earnings of $51 million to $56 million.

The company says the period will be impacted by its acquisitions of Eat24, Foodler and OrderUp. Eat24 set GrubHub back $287.5 million in cash, with CEO Matt Maloney calling the deal a “win-win.”

He added that the move will combine the startups strong West Coast and Miami customer base with GrubHub’s wide array of food offerings through its numerous restaurant partnerships across the country.

GRUB stock soared 10.1% on Wednesday.


Article printed from InvestorPlace Media, https://investorplace.com/2017/10/grubhub-inc-grub-3/.

©2024 InvestorPlace Media, LLC