GrubHub Stock Tanks Despite Q3 Earnings Beat

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GrubHub stock was falling hard on Thursday despite releasing a positive earnings report for the third quarter of 2018.

GrubHub Stock Tanks Despite Q3 Earnings Beat

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GrubHub’s (NYSE:GRUB) earnings report includes earnings per share of 45 cents per share. This is an increase over the company’s earnings per share of 28 cents from the same period of the year prior. It also beat out Wall Street’s earnings per share estimate of 41 cents for the quarter, but couldn’t save GrubHub stock today.

Net income reported by GrubHub for the third quarter of the year came in at $22.75 million. This is up from the company’s net income of $12.99 million that was reported in the third quarter of 2017.

During the third quarter of 2018, GrubHub reported operating income of $21.85 million. The food delivery company’s operating income from the same time last year was $17.05 million.

GrubHub also reported revenue of $247.23 million for the third quarter of the year. This is better than the company’s revenue of $163.06 million that was reported in the third quarter of the previous year. It also came in above analysts’ revenue estimate of $238.90 million for the period, but was unable to keep GrubHub stock from falling.

So what exactly is dragging down GrubHub stock today? Well it may be a couple of things. To start off with, EBITDA for the quarter was a bit low and expectations for the fourth quarter of 2018 are also behind estimates. There’s also the news that COO Stan Chia is leaving the company and GRUB is getting rid of the position.

GRUB stock was down 12% as of noon Thursday, but is up 53% year-to-date.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2018/10/grubhub-stock-down-despite-earnings-beat/.

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