What to Look for in eBay Earnings
eBay is set to release its fourth-quarter earnings report after the markets close Wednesday.
eBay Inc. (NASDAQ: EBAY) is set to release its fourth-quarter earnings report after the markets close Wednesday. Thomson Reuters consensus estimates are calling for $0.50 in EPS on $2.32 billion in revenue. The same period from the previous year had $0.55 in EPS on $4.92 billion in revenue.
This leader in e-commerce has fallen way out of favor and could be an outstanding purchase at current levels. eBay operates a leading online marketplace that enables consumers to purchase goods globally. eBay has more than 155 million active users and generated more than $80 billion in gross merchandise volume in 2014. eBay also operates Stubhub, Half.com, brands4friends and a number of classifieds businesses globally.
Many see eBay as not only a continuing success story, but a solid holding during volatile times like we are experiencing now. In fact, the company displayed outstanding defensive qualities even in 2008, when gross merchandise value still grew 3%. eBay traditionally has reported better margins and greater capital efficiency than most traditional retailers, since it has no inventory or stores to put on a balance sheet.
Ahead of the earnings report a few analysts weighed in on eBay:
- RBC Capital reiterated a Sector Perform rating with a $30 price target.
- Cantor Fitzgerald reiterated a Hold rating with a $27 price target.
- Baird reiterated a Buy rating with a $33 price target.
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So far in 2016, eBay has outperformed the broad markets, with the stock down only 3%. Over the past 52 weeks, the stock is up 13%.
Share of eBay were trading at $26.72 on Wednesday, with a consensus analyst price target of $30.48 and a 52-week trading range of $22.11 to $29.83.
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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.
