Technology
Are Analysts and Investors Getting Too Down on eBay?
Published:
Last Updated:
eBay Inc. (NASDAQ: EBAY) recently posted its fourth-quarter financial results, which were in line with estimates, but guidance severely undercut this success. As a result analysts piled on to the stock, but they may have been overly negative, considering the earnings report.
The e-commerce giant posted adjusted diluted earnings per share (EPS) of $0.50 on revenues of $2.3 billion. In the same period a year ago, eBay reported $0.55 EPS on revenues of $4.92 billion. The Thomson Reuters estimates called for EPS of $0.50 and $2.32 billion in revenue.
Gross merchandise value rose 5% in the quarter to $21.9 billion, excluding currency exchange effects.
The company also generated $1.1 billion of operating cash flow from continuing operations and $1.0 billion of free cash flow from continuing operations, and it repurchased $550 million of its common stock and completed the divestiture of its Enterprise business on November 2, 2015.
The company’s first-quarter outlook calls for revenues of $2.05 billion to $2.1 billion and adjusted EPS of $0.43 to $0.45. The EPS outlook is considerably short of the consensus estimate of $0.48 billion. The consensus revenue forecast calls for $2.16 billion, well ahead of the top of eBay’s expected range.
Shares of eBay ended the week at $23.46, with a consensus analyst price target listed as $28.56 (but this may change) and a 52-week trading range of $22.11 to $29.83.
Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply
clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.