What to Expect From eBay Earnings
eBay is scheduled to report its first-quarter financial results Wednesday after the markets close.
eBay Inc. (NASDAQ: EBAY) will report its first-quarter financial results Wednesday after the markets close. Thomson Reuters has consensus estimates of $0.70 in earnings per share (EPS) on $4.42 billion in revenue. In the same period of the previous year, the company posted EPS of $0.70 and revenue of $4.26 billion.
The company is continuing improvements in the user experience, which is helping the company to keep pace with upstart rivals. eBay’s marketplaces keep attracting new users, 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.
While Wall Street remains focused on the PayPal spin-out scheduled for later this year, better-than-expected fourth-quarter results reinforced the positive view that the eBay is on target to unlock the value of its faster-growing PayPal business, and possibly its enterprise business.
In 2014, eBay decided to separate the PayPal and eBay units into two separate entities. An SEC filing from earlier in April shows more detail on the terms and conditions of this split-up. Make no mistake here, the companies are going to keep some efforts together. Still, the terms are being partially shown for what to expect in the years ahead.
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In the month before earnings, a few analysts made calls on eBay:
- B. Riley reiterated a Buy rating with a $66 price target, which implies upside of 16% from current prices.
- Piper Jaffray downgraded the company to Underweight and lowered its price target to $49 from $52, implying downside of around 13%.
So far on the year, eBay shares have been relatively flat, only up about 0.5%.
Shares of eBay rose 0.6% at $56.74 on Wednesday. The stock has a consensus analyst price target of $59.44 and a 52-week trading range of $46.34 to $60.93. eBay’s market cap is $68.7 billion.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
