PayPal revenues were $669 million and total payment volume was $16.7 billion. On an ex-Skype basis, revenue was up 15%.
The company noted that the US dollar is hurting 2010 results by as much as $250 million. PayPal is seen as adding $0.06 to $0.08 to 2010 earnings. eBay’s previous guidance of $8.8 billion to $9.1 billion for 2010 revenues was just cut today by about $100 million to a new range of $8.8 to $9.0 billion. The earnings target has been cut to $1.23 to $1.28 EPS from a prior range of $1.29 to $1.34.
A mid-point of the range gives eBay a forward P/E of roughly 16. It is hard to say that this is now a value stock with a low P/E, but it is close.
Shares closed down almost 3% at $20.17. The after-hours saw an initial drop on earnings but the shares are now up over 2% at $20.70 in active trading. Much of the caution about the valuation appears to be factored in to the price as the 52-week range is $18.54 to $28.37.
JON C. OGG
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