Groupon (GRPN) Shares Tumble Amid Revisions; Most Analysts See Minor Impact

Shares of Groupon (Nasdaq: GRPN) have just opened Monday's session down more than 12 percent following news Friday afternoon of a revision of the company's reported financial results for its fourth quarter and year ended December 31, 2011. The stock last traded at $16.02.

The revisions resulted in a reduction to Q4 2011 revenue of $14.3 million. The revisions also resulted in an increase to fourth quarter operating expenses that reduced operating income by $30.0 million, net income by $22.6 million, and earnings per share by $0.04.

Groupon's CFO Jason Child said, "We remain confident in the fundamentals of our business, as our performance continues to highlight the value that we provide to customers and merchants." The company affirmed its guidance for first quarter 2012 revenue of $510 million to $550 million and income from operations of $15 million to $35 million. This guidance includes approximately $35 million for stock-based compensation and acquisition-related expense, and it assumes no material business acquisitions or investments and no further revisions to stock-based compensation estimates.

Around the Street this morning:

• BofA downgraded the stock from Buy to Neutral and lowered its price target from $30 to $20;
  
• Stifel Nicolaus downgraded Groupon from Hold to Sell;
  
• Goldman Sachs lowered its price target from $29 to $25 but kept a Buy rating. The firm called the revision minor;
  
• Wells Fargo reduced its valuation range from $27-$29 to $21-$23 and kept an Outperform;
  
• Benchmark lowered its target from $32 to $28 and maintained a Buy; and
  
• Deutsche Bank cut its target from $22 to $21 and maintained a Hold.

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