Is It Time to Dump Grubhub?
Grubhub's (NYSE: GRUB) shares took a nosedive after the company released its third-quarter earnings report on October 28th. It isn't difficult to understand why investors were less than impressed with Grubhub's performance, either. Despite the company adding 1 million active customers and 15,000 restaurants to its platform, as well as growing its active daily grubs, gross food sales, and active diners by 10%, 15%, and 29%, respectively, Grubhub's top line fell far short of the consensus Wall Street analyst estimates.
Grubhub's net income of $1 million (or $0.01 per share) wasn't particularly stellar, either, and perhaps the scariest metric of all was the company's revenue guidance for the fourth quarter, the midpoint of which (once again) falls short of analyst estimates. Despite its stock dropping about 40% since its earnings release, though, Grubhub still trades at 164 times forward earnings. But is the company worth the trouble, or should investors look elsewhere?
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Source Fool.com
