Ebay Inc (NASDAQ:EBAY) released its earnings report for the first three months of 2013 on Wednesday April 17 after the market closed. The company reported earnings per share of $0.63 for the quarter on revenues totaling $3.85 Billion. On today’s market, the firm’s shares trended down, closing at $56.10 down 1.6%.
Analysts were looking for earnings per share of 62 cents from eBay Inc (NASDAQ:EBAY), on quarterly revenue of $3.8 billion. In the first three months of 2012, the company earned 60 cents per share on revenue of $3.3 billion. The firm has been on quite a streak lately, beating analyst estimates for several quarters in a row.
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In the hours leading up to the release of the earnings report, whisper numbers emerged that suggested the company was likely to report earnings of 64 cents per share for the first quarter of the year. Despite those rumors, the market trended against the company all day Wednesday.
So far in 2013, stock in eBay Inc (NASDAQ:EBAY) has risen by almost ten percent. The company has benefited hugely from a wave of optimism in the tech market, and from its own impressive fourth quarter 2012 earnings report. Last January, the company revealed that it had earned 70 cents per share in the last three months of 2012 on revenues of $4 billion, beating analysts’ estimates on both counts.
The important factors for the company’s share price in the coming year are the performance of the company’s Paypal segment as other firms try to get in on the online payments market. Competition in the sector is continuing to grow, and though it has a significant moat, eBay Inc (NASDAQ:EBAY) needs to innovate to stay ahead.
In the company’s core retail sector some changes have been made that have allowed the company to better compete with its rivals. The biggest danger to eBay Inc (NASDAQ:EBAY) market share is its near monopolizing rival, Amazon.com, Inc. (NASDAQ:AMZN). In the fourth quarter of 2012, Ebay added same day shipping and other services to enhance the experience of its users.
Competition from brick and mortar retailers like Wal-Mart Stores, Inc. (NYSE:WMT), who are improving their online presence should not be discounted. Analysts are also consistent in their recommendation that eBay Inc (NASDAQ:EBAY) make some serious upgrades to its interface, something Ebay is apparently taking seriously.
eBay Inc (NASDAQ:EBAY) is facing a difficult year in 2013 as the company seeks to define itself in a changing retail landscape, while faced with immense competition.