3 Things In Focus For Groupon's Q3 Report

Groupon Inc (NASDAQ: GRPN) is scheduled to report its third quarter earnings Wednesday. The stock is up over 72 percent year-to-date.

Analysts at Loop Capital are expecting Groupon's marketing strategy to continue to show progress in the earnings release.

"We believe the company has made progress to acquire new customers while streamlining operations to improve future profitability," wrote Loop Capital analysts. The firm maintains a Hold rating and $6 price target on Groupon.

3 For Q3: Key Points Ahead

• Groupon's strategy changes have been positive. The company has increased marketing efforts and streamlined its operations overseas after exiting unprofitable countries. Groupon has also reduced low to no margin ecommerce sales and improved its user experience, according to Loop Capital.
• Partnerships or M&A activity could still be in the works. Groupon recently announced a partnership with Comcast Corporation (NASDAQ: CMCSA), which analysts feel could lead to some type of product or promotion between Groupon's 28 million active customers in North America and Comcast's 28 million residential and commercial customers. Alibaba Group Holding Ltd(NYSE: BABA) is a shareholder in Groupon, and could eventually utilize its partnership to tap into the North American market.
• Groupon is investing in acquiring new customers to drive local growth. The company has grown its active customers by 1.1 million in Q2 and 1 million in Q1 this year. Local revenues have grown 6-8 percent in the last three quarters.

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