CHICAGO - Shares in Groupon (GRPN) slumped Friday after the company cut its sales forecast, laying part of the blame on a strong dollar.
Groupon's stock dropped 16 cents, or 3.4 percent, to $4.52 in morning trading. That's after hitting a two-year low of $4.38 earlier in the day.
While turning in second-quarter results early Friday, the online deal service said it expects revenue in the range of $700 million to $750 million in the current quarter, well below analysts' targets. On average, analysts had forecast Groupon would bring in revenue of $755.9 million, according to FactSet. The Chicago-based company pointed to "unfavorable" foreign exchange rates.
Groupon's second-quarter earnings, however, matched Wall Street's expectations. It posted net income of $109.1 million, after reporting a loss in the same period a year earlier. Adjusted for one-time gains and costs, earnings were 2 cents per share, exactly what analysts had forecast, according to Zacks Investment Research.
But the company's $738.4 million in quarterly revenue missed estimates. Analysts had expected $753.9 million analysts had expected, according to Zacks.
For the full year, the company expects revenue in the range of $3.15 billion to $3.3 billion. Analysts expect $3.19 billion, according to FactSet.
Groupon's stock has struggled this year, losing 46 percent.