eBay Earnings Beat, Bouyant Talk After Paypal Chatter

Online auction giant eBay reported better than expected third quarter earnings after the market close Tuesday. eBay spoke positively for the future after just  last week it fell 9% after Paypal’s release.

Online auction giant eBay reported better than expected third quarter earnings after the market close Tuesday.  eBay spoke positively for the future after just  last week it fell 9% after Paypal’s release.


eBay $EBAY Reported Earnings After Close Tuesday

$0.56 Beat Forecast $0.55 EPS With In-Line $2.65 billion in revenue 

Earnings

EBay Inc. (NASDAQ: EBAY) reported third-quarter results after the closing bell on Tuesday with adjusted earnings up 19% to $0.56 per share above analysts’ forecast. R of $0,55. Profit was $720 million or $0.73 per share, sharply higher than $520 million or $0.48 per share recorded in the third quarter of 2017. Revenues increased 6% to $2.65 billion and  in line with the Wall Street forecast. At $22.7 billion, gross merchandise volume was up 5% compared to last year. Shares have had a 52-week range of $26.95 to $46.99.

eBay Inc NASDAQ: $EBAY

Market Reaction After hours 27.80 +0.38 (1.39%)

Outlook

  • eBay estimates revenues to be between $2.85 billion and $2.89 billion in the fourth quarter when earnings are expected to come in the range of $0.87 per share to $0.92 per share.
  • Adjusted earnings are forecast in the $0.67-$0.69 per share range.
  • For the whole of 2018, the company is looking for revenues in the range of $10.72 billion to $10.76 billion and adjusted earnings between $2.29 per share and $2.31 per share.

eBay Earnings Q3 18

Headwind: eBay Fell 9% on PayPal Earnings Report  

Paypal was spun off eBay a while back now and was a key part of each other’s success. Last week PayPal’s earnings release hurt eBay. In the release PayPal that revealed that customers were 54% more willing to complete an online transaction if PayPal was offered at checkout from a study. The study also showed that 59% of PayPal users have abandoned a transaction if PayPal wasn’t listed as a payment option.

Why the concern? eBay announced earlier this year it would begin intermediating its own payments, in partnership with European payments processor Adyen, and gradually phasing out PayPal as the processor of record. eBay said at the time the move would lower costs and provide greater control for its merchants. This move away from PayPal may be costing eBay valuable sales. Let us see wht eBay says in their Conference call..

eBay Q2  Earnings Recap

In the second quarter, adjusted earnings rose 18% to $0.53 per share beating analysts’ estimates. Reported net income was $638 million or $0.64 per share, compared to $29 million or $0.03 per share last year. Revenues rose 9% to $2.6 billion with a broad-based uptick in the performance of the business segments.

  • eBay Inc NASDAQ: $EBAY
  • Market Reaction > Pre-market 35.35 −2.60 (-6.85%)

Highlights

  • eBay raised its global user base by 4% to 175 million in the second quarter.
  • At $23.6 billion, gross merchandise volume was up 10% compared to last year.
  • During Q2, the company expanded its footprint in the Japanese market by acquiring the local arm of online shopping platform Giosis.
  • eBay also repurchased around 26 million shares for $1 billion.
  • Looking ahead, eBay is planning to divest its stake in India-based e-commerce firm Flipkart and re-launch its own Indian operations. The sale is expected to generate gross proceeds of about $1.1 billion.

eBay Earnings Q2 18

Outlook

eBay lowered third-quarter and full-year guidance below analysts’ estimates. Revenue is estimated to be between $2.64 billion and $2.69 billion in the next quarter. GAAP earnings and adjusted earnings are expected to be in the range of $0.37 – $0.41 per share and $0.54 – $0.56 per share respectively.

For the whole of fiscal 2018, eBay is looking for earnings in the range of $1.91 per share to $2.01 per share on revenues of $10.75 – $10.85 billion. Full-year adjusted income is expected to be between $2.28 per share and $2.32 per share.

Source: alphastreet.com

Source: eBay, Alpha Street

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