eBay Tacks on Another Win With Q4 Earnings
When eBay released its fourth-quarter financial results after the markets closed on Tuesday, the online auctioneer said that it had $0.71 in earnings per share (EPS) and $2.9 billion in revenue.
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When eBay Inc. (NASDAQ: EBAY | EBAY Price Prediction) released its fourth-quarter financial results after the markets closed on Tuesday, the online marketplace reported $0.71 in earnings per share (EPS) and $2.9 billion in revenue. That compares with consensus estimates of $0.68 in EPS and $2.87 billion in revenue, as well as the $0.59 per share and $2.61 billion posted in the same period of last year.
During the fourth quarter, eBay grew active buyers by 4% across its platforms, for a total of 179 million global active buyers.
The Marketplace platforms delivered $2.3 billion of revenue and $23.2 billion of gross merchandise value (GMV). Marketplace revenue growth was 7% on an as-reported basis and 6% on an FX-neutral basis, and GMV was up 1% on both an as-reported and 3% on an FX-neutral basis.
StubHub drove revenue of $314 million, up 2% on both an as-reported and FX-neutral basis, and GMV of $1.4 billion, down 2% both on as as-reported and an FX-neutral basis. Separately, Classifieds platforms delivered revenue of $263 million, up 8% on an as-reported basis and 11% on an FX-neutral basis.
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Looking ahead to the first quarter, the company expects to see EPS in the range of $0.62 to $0.64 and revenue between $2.55 billion and $2.60 billion. Consensus estimates call for $0.61 in EPS and $2.66 billion in revenue.
Devin Wenig, President and CEO of eBay, commented:
We delivered record earnings for the fourth quarter and full year 2018. In 2019, our focus will be on further improvements to the eBay user experience, while pursuing significant long-term growth opportunities in advertising and payments. We are confident in the strength of our business and future growth prospects, as demonstrated by our decision to institute eBay’s first-ever dividend and increase our share repurchase program.
Shares of eBay closed Tuesday at $33.69, in a 52-week range of $26.01 to $46.99. The consensus analyst price target is $36.60. Following the announcement, the stock was up about 3% at $34.63 in the after-hour trading session.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
