eBay Delivers on Earnings (EBAY)
Online auction giant eBay Inc. (NASDAQ: EBAY) has just reported is fourth quarter earnings ahead of expectations. The company’s earnings were $0.52 EPS and revenues rose 5% to $2.5 billion (10% excluding Skype). Thomson Reuters had estimates of $0.47 EPS…
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PayPal ended the quarter with 94.4 million active registered accounts, which it says was almost 1 million new accounts per month. PayPal’s net total payment volume was $26.9 billion.
Marketplaces showed that gross merchandise volume (ex-vehicles) rose to $15.0 billion and sold items grew 10%. eBay did offer up guidance as follows:
- Q1 revenues of $2.4 to $2.5 billion with non-GAAP earnings of $0.44 to $0.46 EPS; Thomson Reuters has estimates of $0.45 EPS and $2.43 billion in revenues.
- Full year 2011 revenues of $10.3 to $10.6 billion and non-GAAP earnings of $1.90 to $1.95 EPS; Thomson Reuters estimates are $1.85 EPS and $10.19 billion in revenues.
The company generated $854.0 million of operating cash flow and $656.5 million of free cash flow during the quarter, and it repurchased about $400 million of its common stock in the fourth quarter.
Cash and cash equivalents was listed as $7.8 billion at December 31, 2010 versus $5.2 billion at December 31, 2009. Keep in mind that eBay issued $1.5 billion in senior notes in the fourth quarter and it launched a commercial paper program allowing it to issue up to $1.0 billion in short-term notes.
eBay closed down 1.2% at $29.10 on the day and shares now seem to be up 5.5% at $30.69 in the after-hours trading session. The 52-week trading range is $19.06 to $31.64.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
