eBay Inc. (NASDAQ: EBAY) is set to report its fourth-quarter results Wednesday after the market close. Thomson Reuters has consensus estimates of $0.89 in earnings per share on $4.93 billion in revenue. In the fourth quarter of the previous year, the e-commerce giant posted $0.81 in earnings per share and $4.53 billion in revenue.
Source: courtesy of ebay
The company is continuing to improve its user experience. eBay’s marketplaces keep attracting new users, as evidenced by double-digit growth in active users and items sold. Many Wall Street analysts feel the company has a decided advantage in cross-border shipping of product, something that many other retailers struggle with. eBay reported solid third-quarter earnings, and the PayPal business continues to be very strong. These are metrics that set eBay apart during the holiday shopping season. While not only enjoying strong early seasonal sales numbers, eBay remains a potential buyout target with its valuable PayPal franchise.
Recently, analysts weighed in on the direction that they think eBay is heading. B. Riley reiterated a Buy rating with a $64 price target, implying an upside of 19% from Tuesday’s closing price. It is worth noting that this call was made the same day earnings will be released. Earlier in the month, Topeka Capital Markets issued a Hold rating for eBay and lowered its price target to $57 from $58. The consensus analyst price target is $58.27, which implies upside of 8.6%.
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For the most part, the stock’s moving averages have been immaterial until recently. The 50-day moving average is currently at $55.25, a level shares had only crossed under in the past week. The 200-day moving average is $52.94, which has acted as support for the three days prior to earnings.
Shares of eBay were up 0.5% to $53.94 just after the opening bell in Wednesday’s trading. The company has a market cap of almost $67 billion, and the stock’s 52-week trading range is $46.34 to $59.70.
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