GrubHub Inc. Stock Jumps 16%, Beats Analysts Estimates by a Whopping $4 Million

GrubHub Inc.

Last month, GrubHub Inc. (NYSE:$GRUB) shares were highly sought by investors due to its impressive 16% climb. The key driver of its October gains? A strong third-quarter earnings report.

As the country’s leading food-takeout marketplace, GrubHub posted another round of impressive results as revenue jumped 32% to $163.1 million, beating analyst estimates at $159.6 million. Gross food sales in the quarter also increased $867 million, while active diners jump 28% to 9.81 million, and daily average grubs, or orders, were up 14% to 304,500. On the bottom line, adjusted earnings per share scooted up from $0.23 to $0.28, which topped expectations at $0.24.

Further, results undoubtedly benefitted from acquisitions of Foodler and 27 of OrderUp’s markets, both of which closed during the quarter. After the period, GrubHub close on its acquisition of Yelp’s (NYSE:$YELP) Eat24 for a cool $288 million.

GrubHub’s performance was the latest evidence that the company is becoming a strong contender to resist challenges from tough rivals like Amazon (NASDAQ:$AMZN) and Uber. Grubhub Inc. already has a majority of market share in 7 out of the 22 largest cities in the U.S, including New York, Chicago, Boston, and Philadelphia.

Looking towards the future, the company called for revenue of $197 million to $205 million in the current quarter, which was well above the consensus at $181.9 million as the company will benefit greatly from the Eat24 acquisition.

GrubHub shares are not up 66% year to date.

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About the author: Jennifer is a University of Western Ontario graduate with a degree in International Business. She strives to excel as a content creator in the digital sphere, working with clients in the Finance and Tech industry to leverage clickable taglines, images, and articles in driving traffic. When not writing, Jennifer enjoys photography, copywriting, and video production.