eBay Earnings: Here’s Why Investors are Not Excited Now

The Cheat Sheet

eBay Inc. (NASDAQ:EBAY) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2.32%. [More from WallStCheatSheet: Intel Ponders Future of Media Unit, Merck Commits to Zilmax, and 3 More Hot Stocks] Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

eBay Inc. Earnings Cheat Sheet [More from WallStCheatSheet: ADP Employment Report: Job Growth Hits 6-Month Low]

Results: Adjusted Earnings Per Share increased 14.55% to $0.63 in the quarter versus EPS of $0.55 in the year-earlier quarter.

Revenue: Rose 14.37% to $3.75 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: eBay Inc. reported adjusted EPS income of $0.63 per share. By that measure, the company beat the mean analyst estimate of $0.62. It missed the average revenue estimate of $3.77 billion.

Quoting Management: “We had a strong first quarter, with accelerating user growth across both Marketplaces and PayPal, and with GSI enabling their retail clients to grow faster than ecommerce,” said John Donahoe, eBay Inc. President and CEO. Technology is creating a commerce revolution, and we are in the forefront with strong mobile leadership and a focus on helping retailers and brands engage consumers anytime, anywhere.”

Key Stats (on next page)…

Revenue decreased 6.14% from $3.99 billion in the previous quarter. EPS decreased 10% from $0.70 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.66 and has not changed. For the current year, the average estimate is a profit of $2.75, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com) More Recommended Stories

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