Groupon replaces CEO; stock takes dive
Groupon Inc. on Tuesday replaced co-founder Eric Lefkofsky as chief executive officer, but shares of the Chicago-based ecommerce company plunged more than 25 percent in after-hours trading.
Groupon Inc. on Tuesday replaced co-founder Eric Lefkofsky as chief executive officer.
The Chicago ecommerce company said Lefkofsky will return to his previous role as board chairman. He had been CEO since August 2013.
Rich Williams, the company’s chief operating officer since June, was appointed CEO, effectively immediately. Williams previously was president of North America for Groupon.
“Rich is the right and natural choice for Groupon’s future, and he has the unanimous support of the board of directors. We are fully confident we have identified the best leader for our employees, customers, partners and shareholders,” Ted Leonsis, outgoing chairman and newly appointed lead independent director, said in a statement.
“Over the last two years, Eric has worked tirelessly for the company and the business is much stronger today because of it.”
Groupon shares plunged more than 25 percent in afterhours trading Tuesday after the company gave weak profit and revenue guidance for the current quarter.
For the current quarter ending in December, Groupon said Tuesday it expects its adjusted results to range from a loss of 1 cent per share to earnings of 1 cent per share.
Analysts had been expecting adjusted earnings of 7 cents a share during the period, according to FactSet.
The company said it expects revenue in the range of $815 million to $865 million for the fiscal fourth quarter. Analysts surveyed by Zacks had expected revenue of $950 million.
Groupon on Tuesday reported a loss of $27.6 million, or 4 cents per share, in its third quarter. The Chicagobased company said earnings, adjusted for one-time gains and costs, came to 5 cents per share.
The results beat Wall Street expectations. The average estimate of 11 analysts surveyed by Zacks Investment Research was for earnings of 1 cent per share.
Revenue totaled $713.6 million in the period, which did not meet Street forecasts. Seven analysts surveyed by Zacks expected $729.7 million.
A year earlier the company posted a loss of $21.2 million, or 3 cents per share, on revenue of $714.3 million.
The company said it spent $192.9 million repurchasing 44.1 million shares of stock during the quarter.
After the release of the report, shares fell $1.03 to $3.