Investing

Earnings Previews: eBay, Ford, Teladoc

Nearly 80 companies in our watch list reported earnings after markets closed Monday and before they opened again on Tuesday. Of those, 20 missed consensus earnings estimates and 21 missed revenue estimates.

After markets close Tuesday, we’ll hear from half a dozen companies: Alphabet, AMD, Microsoft, Robinhood, Twitter and Visa. On Wednesday morning, reports are due from four more companies we follow: Boeing, Coca-Cola, GM and McDonald’s.

Here’s a look at three companies scheduled to report results after markets close Wednesday.

eBay

Shares of eBay Inc. (NASDAQ: EBAY) have added 50% to their price over the past 12 months. Since the beginning of 2020, eBay’s shares have risen by about 128%. Revenue has increased by an average of about 28% in each of the past four quarters, and operating income is up nearly 8% on average. Cash flow from operations is up by a factor of 10, from $105 million in the third quarter of last year to $1.07 billion in the second quarter of this year.

Given that history, it comes as a bit of a surprise that analysts are withholding judgment on the stock. Of 29 brokerages covering eBay, just 10 rate the stock a Buy or Strong Buy, while 18 have a Hold rating on the shares. At the recent price of around $80, the stock trades about $6 per share above the median price target. Based on the high price target of $85, the implied upside is about 6.3%.

Analysts’ consensus third-quarter revenue estimate is $2.46 billion, which would be down almost 8% sequentially and down about 5.7% year over year. Adjusted earnings per share (EPS) are forecast at $0.88, down nearly 11% sequentially but up by 3.5% year over year. For full fiscal 2021, eBay is expected to report EPS of $3.91, up 14.6%, on sales of $10.41 billion, up about 1.4%.

The stock trades at 20.6 times expected 2021 EPS, 18.0 times estimated 2022 earnings and 16.6 times estimated 2023 earnings. The stock’s 52-week range is $45.36 to $81.19. eBay pays an annual dividend of $0.72 (yield of 0.94%).

Ford

Both General Motors and Ford Motor Co. (NYSE: F) are reporting earnings on Wednesday–GM before the opening bell and Ford after the closing bell. Like nearly every automaker, both are also struggling with supply chain issues, but Ford is expected to see a revenue jump, while GM is forecast to see sales decline.