eBay Inc (NASDAQ:EBAY) is set to report second quarter 2013 results on July 17. Last quarter, it posted a 3.7 percent positive surprise. Let’s see how things are shaping up for this announcement.
Analysts are expecting eBay to report earnings of 54 cents per share, up 4 percent from a year ago when it reported earnings of 52 cents per share.
Growth factors this past quarter for eBay
eBay Inc (NASDAQ:EBAY)’s strength at PayPal, fast-growing presence in the mobile space and reinvigorated Marketplaces business all led to higher sales growth rates in the first quarter of 2013. The continuous introduction of new solutions to enhance the mobile shopping experience and rapid consumer adoption also contributed to higher sales.
The sale of low-value items and increased expenditure on the launch of various new products contained gross margin expansion in the last quarter.
For the second quarter, eBay expects to generate GAAP EPS of 48 to 50 cents and non GAAP EPS of 60 to 62 cents.
Raymond James expects a neutral to positive reaction
Raymond James expects a neutral to positive reaction given their outlook for modest 2Q revenue and EPS upside. While 2Q guidance issued last quarter was below expectations, they expect 2Q results to come in at or above the high end of guidance and full year estimates remain very achievable.They maintain Outperform rating and $61 price target.
Raymond James 2Q 13 expectations
They estimate 2Q revenues of $3.90 billion, approximately in line with consensus of $3.89 billion and at the high end of guidance of $3.80-3.90 billion. For Marketplace, they estimate 2Q U.S. GMV (Gross Merchandise Volume, ex-vehicles) of $7.18 billion and international GMV of $11.07 billion. Additionally, they estimate payments transaction revenue of $1.47 billion . Also estimate non-GAAP EPS of $0.63, in line with consensus and at the high end of guidance of $0.61-0.63.
ChannelAdvisor data indicates accelerating same-store sales
For 2Q, CA indicated eBay Inc (NASDAQ:EBAY) same-store sales grew 18.1 percent y/y, an acceleration from 15.4 percent y/y in 1Q. Specifically, auctions (approximately one-third of GMV) decreased 14.2 percent y/y in 2Q, vs. fixed price (approximately two-thirds of GMV), which increased 17.8 percent y/y . Additionally, eBay Motors (parts and accessories) increased 30.4 percent y/y. They estimate eBay North America revenue growth for U.S. GMV (most comparable to CA data) of 15.0 percent y/y in 2Q.
ComScore data more mixed
U.S. COMSCORE, Inc. (NASDAQ:SCOR) PC data (excluding mobile) indicated eBay Inc (NASDAQ:EBAY) 2Q unique visitors decreased 3 percent y/y (vs. -11 percent y/y in 1Q), while total visits decreased 1 percent y/y (vs. -7 percent y/y in 1Q), while for PayPal 2Q unique visitors increased 16 percent y/y , while total visits increased +22 percent y/y . For Europe, 2Q comScore data (through May) indicates a 2 percent y/y increase in unique visitors , and a 4 percent y/y increase in total visits .
Key questions for call
Marketplaces growth – specifically Europe, which was softer than expected in 1Q, though Raymond James believe Europe macro data points indicate relative stability in 2Q, Payments growth and POS opportunity, Mobile growth and Cross border trade & outlook.