eBay Inc. Earnings: Revenue and Net Income Grow

Wall St. Cheat Sheet

S&P 500 component eBay Inc. reported net income above Wall Street’s expectations for the fourth quarter. eBay is an Internet company that, together with its subsidiaries, provides online marketplaces for the sale of goods and services. It also provides other online commerce platforms, online payment solutions, and communication offerings to a diverse community of individuals and businesses.

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eBay Earnings Cheat Sheet for the Fourth Quarter .

Results: Net income for eBay Inc. rose to $1.98 billion ($1.51 per share) vs. $559.2 million (42 cents per share) in the same quarter a year earlier. This is a more than threefold rise from the year earlier quarter.

Revenue: Rose 35.5% to $3.38 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: EBAY reported adjusted net income of 60 cents per share. By that measure, the company beat the mean estimate of 55 cents per share. Analysts were expecting revenue of $3.32 billion.

Quoting Management: “We had a strong fourth quarter finish to an excellent year, increasing our confidence in our three-year outlook,” said eBay Inc. President and CEO John Donahoe. “Across eBay, PayPal, GSI and X.commerce, we have a robust portfolio of global commerce platforms and innovative mobile, local and social commerce technology assets. We are well-positioned to compete in the emerging new retail environment, and to help retailers of all sizes grow and engage their customers anytime, anywhere. We are a different eBay today, no longer just an ecommerce leader but a stronger, more diverse global commerce company shaping the future of shopping and payments.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 31.8% to $2.97 billion in the third quarter. The figure rose 24.6% in the second quarter from the year earlier and climbed 15.9% in the first quarter from the year-ago quarter.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 2 cents in the third quarter and by one cent in the second quarter.

The company has now seen net income rise in two straight quarters. In the third quarter, net income rose 13.6% from the year earlier.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the first quarter of the next fiscal year is 45 cents per share, down from 48 cents ninety days ago. The average estimate for the fiscal year is now $1.71 per share, down from $1.72 sixty days ago.

Competitors to Watch: Amazon.com, Inc. , GSI Commerce, Inc. , Liquidity Services, Inc. , Google Inc. , Overstock.com, Inc. , BIDZ.com, Inc. , Gaiam, Inc. , U.S. Auto Parts Network, Inc. and HSN, Inc. .

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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