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eBay (EBAY) to Report Q2 Earnings: What's in the Offing?

·4 min read

eBay EBAY is scheduled to report second-quarter 2022 results on Aug 3.

For the second quarter, EBAY expects net revenues of $2.35-$2.40 billion. On an FX-neutral basis, the metric is anticipated to decline 9-7% from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for revenues is pegged at $2.37 billion, implying a decline of 11.1% from the year-ago period’s reported figure.

EBAY anticipates non-GAAP earnings per share between 87 cents and 91 cents. The consensus mark for earnings stands at 90 cents per share, which has moved 2.17% downward in the past 30 days. This indicates a decline of 9.1% from the year-ago reported figure.

EBAY beat on earnings in three of the trailing four quarters, matching the mark just once, the average surprise being 2.28%.

eBay Inc. Price and EPS Surprise

eBay Inc. Price and EPS Surprise
eBay Inc. Price and EPS Surprise

eBay Inc. price-eps-surprise | eBay Inc. Quote

Factors to Consider

eBay’s second-quarter results are likely to reflect gains from strong momentum across the Marketplace platform.

EBAY is gaining traction among small business owners who are leveraging the Marketplace to expand their reach to customers. This is expected to have remained positive in the underlined quarter.

Also, the increasing number of small businesses is expected to have attracted more customers to the platform. This is likely to have aided growth in the active buyer base during the quarter under review.

Continuous efforts to strengthen the Authenticity Guarantee service for acquiring loyalty of customers are expected to have driven top-line growth in the to-be-reported quarter.

Also, EBAY’s recent initiative to let buyers shop from sellers across a wide range of refurbished inventory, backed by its moneyback guarantee and warranties, might have remained another positive.

EBAY is expected to have gained momentum among collectible enthusiasts on the back of its robust tools. This is likely to have benefited its trading card business in the quarter to be reported.

During the second quarter, eBay introduced eBay vault, a digital marketplace for single and top-graded trading cards. The vault is equipped with the Price Guide and Collections tool, which helps vault users track the real-time valuation of their trading card portfolios and list cards directly from their collection. This is likely to have been a tailwind.

The growing adoption of new products and increased optimization are likely to have benefited eBay’s advertising business in the second quarter. Strength in Promoted Listings is expected to have helped eBay gain momentum among sellers. Also, solid promoted listings momentum might have continued driving eBay’s advertising revenues.

However, rising competitive pressure from e-commerce giants like Amazon is likely to have continued posing a challenge to eBay’s market position.

Uncertainties related to the coronavirus pandemic, impacts of the Russian-Ukraine war, supply-chain constraints and inflationary pressures are likely to get reflected in the upcoming quarterly results.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for eBay this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here, as you see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

eBay has an Earnings ESP of +1.67% and a Zacks Rank #4 (Sell) at present.

Stocks to Consider

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.

Keysight Technologies KEYS has an Earnings ESP of +1.23% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Keysight Technologies is scheduled to release third-quarter fiscal 2022 results on Aug 17. The Zacks Consensus Estimate for KEYS’ earnings is pegged at $1.79 per share, suggesting an increase of 16.2% from the prior-year fiscal quarter’s reported figure.

Amcor AMCR has an Earnings ESP of +1.39% and a Zacks Rank #3 at present.

Amcor is set to report fourth-quarter fiscal 2022 results on Aug 16. The Zacks Consensus Estimate for AMCR’s earnings is pegged at 24 cents per share, suggesting an increase of 4.35% from the prior-year fiscal period’s reported figure.

Box BOX has an Earnings ESP of +1.20% and a Zacks Rank #3 at present.

Box is scheduled to release second-quarter 2022 results on Aug 24. The Zacks Consensus Estimate for BOX’s earnings is pegged at 28 cents per share, suggesting an increase of 33.3% from the prior-year quarter’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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eBay Inc. (EBAY) : Free Stock Analysis Report
 
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