What to expect from eBay earnings


EBay Inc. is scheduled to report second-quarter earnings after the market close Wednesday.

Here’s what to expect:


Earnings: Analysts surveyed by FactSet expect eBay to report earnings of 42 cents per share, down from 76 cents in the year-earlier period.

Estimize, which crowdsources estimates from hedge funds, academics and others, is expecting earnings of 43 cents per share, based on 84 estimates.

Revenue: Analysts surveyed by FactSet expect revenue of $2.2 billion, matching the Estimize consensus.

EBay reported revenue of $4.4 billion in the year-earlier period.

Stock Reaction: Shares of eBay have gained 4% in the past three months, compared with the S&P 500’s gain of 3%. Year to date, shares of eBay have fallen 4% compared with the S&P 500’s gain of 6%.

Analysts listed on FactSet as covering eBay’s stock have an average price target of $28.14 and an overweight rating.

What else to look for: EBay is still in the process of reviving its platform after it split from PayPal in July 2015. In the first quarter, the company reported its first sales rise in five quarters as volume picked up.

The company is facing stiff competition in the online space, and is working to establish itself as more of an online marketplace, and less a destination for used goods.

As detailed by SunTrust Robinson Humphreys analysts, a large component of that transformation is adding structured data, which would make searching for product listings easier. The analysts also see long-term growth from a “disciplined” mergers and acquisition strategy and continued share buybacks.

The analysts expect eBay to report second-quarter earnings in line with expectations, but see short-term growth challenged by slower expected growth from StubHub and a limit on the amount of share buybacks the company can do.

Fuente: Caitlin Huston para Markets Watch.

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