Customer "Promiscuity" Drives Grubhub's Earnings Into the Ditch
Nope. Turns out Grubhub (NYSE: GRUB) didn't have any drive left in the third quarter. The online meal delivery specialist met earnings estimates, but missed analyst revenue expectations. Its stock plunged nearly 40% in morning trading because its outlook for the fourth quarter fell well short of what Wall Street was anticipating.
Telling investors, "the easy wins in the market are disappearing a little more quickly than we thought," CEO Matt Maloney and CFO Adam DeWitt did nothing to instill any confidence that Grubhub knows how to dig its way out of the hole in which finds itself. Guidance that indicates Grubhub will generate little to no growth during the coming quarter does not show the company being "ideally positioned" to win the day.
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Source Fool.com
