Groupon stock surges as results top estimates

Groupon stock jumped the most in more than two years after the company reported fourth-quarter results that beat analysts’ estimates, driven by purchases in North America.

The online marketplace said profit excluding some costs was 4 cents a share, compared with the average analyst estimate for a break-even quarter. The shares surged as much as 29 percent, the biggest intraday increase since August 2013. Even with Friday’s gains, the shares are down 62 percent over the past 12 months. The stock closed up 65 cents at $2.89.

“If we do our jobs really well, we’ll beat our plan,” Chief Executive Officer Rich Williams said. “The reality is we have a lot of work to do.”

Having struggled since its 2011 initial public offering to spur growth and profits, Groupon replaced CEO Eric Lefkofsky in November. Since Williams took over, he increased the marketing budget in an effort to revive and reinvent the former Internet darling. Williams said his efforts are starting to bear fruit. Highlights:

• Groupon said adjusted earnings before interest, taxes, depreciation and amortization would be $80 million to $130 million in 2016.

• Revenue in the period rose 3.8 percent to $917.2 million, beating estimates of $845.9 million.

• Groupon is continuing its search for a permanent chief financial officer and is interviewing internal and external candidates.

“One of the things you saw in the fourth quarter was faster-than-expected progress on the restructuring side,” Williams said.

Groupon operates in 28 countries.