Expectations from Earnings Call
When GrubHub (GRUB) announces its 3rd quarter earnings before the market opens on October 25, I expect the guidance from recently closed acquisitions to drive the stock price. My analysis indicates that the recent Eat24, Orderup, and Foodler acquisitions will add 15-20% to the 2018 revenue on top of 20-25% organic growth. The revenue/EPS beat or miss in the seasonally weak Q3 will be a secondary factor.
Recent Acquisitions
Along with Q2-17 earnings call, GrubHub announced the acquisition of Eat24 (Yelp's food delivery platform). A few days prior the company had announced the acquisitions of Groupon's (NASDAQ:GRPN) Orderup and Boston-based Foodler. These acquisitions were expected to close by the end of 2017. However, GrubHub issued a press release on October 10 that it closed the acquisitions much sooner than anticipated. No update on Q4-17 or 2018 guidance was given. Also, none of the sell-side analysts have updated their models since the closure.
