eBay Earnings Dwarfed by Buyback (EBAY)

By Jon C. Ogg Updated Apr 27, 8:40PM EDT · Published Oct 20, 4:28PM EDT

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eBay Inc. (NASDAQ: EBAY) is out with its earnings and the online auction giant reported $0.40 EPS and $2.25 billion in revenues. Thomson Reuters had estimates of $0.37 EPS and $2.18 billion in revenues. As far as guidance for next quarter, eBay gave estimates of $0.45 to $0.48 EPS and $2.39 to $2.49 billion in revenues. Thomson Reuters had estimates of $0.44 EPS and $2.41 billion in revenues.

eBay’s Cash and equivalents were $6.1 billion at the end of the quarter. The Free Cash Flow was $580.1 million, cash flow from operations was $747.1 million, and operating margin was 28.7%, and operating margin was 21.8%. Gross Merchandise volume was $12.6 billion on an ex-auto basis. The company also ended with close to 90 million PayPal accounts.

More importantly, the company authorized up to $2 billion for additional share buybacks and it authorized a commercial paper program of up to $1 billion and has approved the sale of up to $1.5 billion in term-debt financing under an existing shelf registration. The company spent roughly $300 million buying shares in the last quarter.

eBay shares closed up 0.5% at $25.66 today versus a 52-week range of $19.06 to $28.37. Shares appear to be indicated flat in after-hours.

JON C. OGG

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About the Author Jon C. Ogg →

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.