eBay Results Satisfy Critics

eBay (EBAY-NASDAQ) posted $0.31 EPS and $1.7 Billion in revenues; it bought $1 Billion in stock and will add $2 Billion more to the buyback plan.  Estimates were $0.28 EPS and revenues of $1.67 Billion.

eBay’s users generated a total of 610 million listings in Q4-06, 12% higher than the 546 million listings reported in Q4-05. Gross Merchandise Volume (GMV) was $14.4 billion in Q4-06, representing a 20% year-over-year increase from the $12.0 billion reported in Q4-05.  Operating margin fell from 28% to 26%, but was 30% outside of options.

Q1 Guidance: expects revenues $1.67 to $1.72 Billion. Non-GAAP earnings $0.28 to $0.30.  STREET: Q1 2007 estimates were $0.29 EPS and $1.7 Billion in revenues.

2007 Guidance: expects revenues range of $7.05 to $7.3 Billion. Non-GAAP operating margin for 2007 is expected to be 33%. Non-GAAP EPS $1.25 to $1.29. STREET: 2007 estimates are $1.23 EPS and $7.15 Billion revenues.

They had to raise guidance to come in-line with street estimates, and they have done that with the added plus of the $2 Billion in share buybacks.  Shares closed up almost 5% in normal trading at $30.00, and the first reactions have the shares up almost 9% in after-hours trading around $32.65.  The 52-week trading range is $22.83 to $44.75.  So unless there is hidden bad news it looks like they have gotten past the hurdles and negative PR for price hikes and it looks like the street is going to be able to go back to analyzing the company results rather than the internal noise and past judging acquisitions.  Meg Whitman will be speaking on CNBC tomorrow at 9:30 AM EST. 

Jon C. Ogg
January 24, 2007