eBay Inc. (NASDAQ: EBAY) has reported its fourth quarter earnings. The near-monopoly in online auctions in the U.S. reported earnings of $0.70 EPS and an 18% gain to $3.99 billion in revenue. Thomson Reuters had estimates of $0.69 EPS and $3.98 billion in revenue. We would note that all segments rose in double-digit percentages for this last quarter on a year over year basis. eBay’s guidance for the coming quarter at the mid-point of the range is about $0.61 EPS versus $0.63 expected and guided to $3.7 billion in sales versus $3.79 billion expected. Cash and cash equivalents and non-equity investments totaled $11.5 billion at December 31, 2012.

For 2013, eBay’s guidance is net revenues of $16 billion to $16.5 billion ($16.26B at mid-point) and non-GAAP earnings of $2.70 to $2.75 per share ($2.725 at the mid-point). Thomson Reuters had a consensus pairing of $2.74 EPS and approximately 16% expected sales growth to $16.3 billion.

The company said, “The increase in non-GAAP earnings per diluted share was driven by double digit user growth across the portfolio, strong gains in mobile adoption, and accelerating growth in the company’s Marketplaces business, reflecting a 19% increase in U.S. gross merchandise volume (GMV), excluding vehicles.”

eBay was recently featured among our list of internet stocks with the most and least upside for 2013.

One note worth noting: At $2.725 EPS for 2013 projected, eBay closed at almost 19.5-times its expected earnings.

eBay shares closed up 0.75% at $52.90 against a 52-week trading range of $29.89 to $54.20. We would note that eBay’s market cap was roughly $68.3 billion and analysts have a consensus price target objective of $57.00 before the effects of this earnings report.

Shares initially ticked up higher on the report but the stock is down about 1.3% at $52.10 in the after-hours session. We would consider this story mostly as unfinished business until the analysts make their upgrades and downgrades on Thursday morning to readjust their valuations.

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