eBay Inc (NASDAQ:EBAY) will be reporting its fourth quarter results after the bell on Wednesday, January 22. Th online marketplace company will also hold a conference call at 5:00 p.m. EST. The company is expected to have witnessed slowing growth in its Marketplace business. But the PayPal revenue growth is likely to remain strong in the fourth quarter.


Analysts not very enthusiastic about eBay

Analysts expect the San Jose, California-based company to record a net profit of $1.05 billion or 66 cents a share. eBay Inc (NASDAQ:EBAY) had earned 57 cents or $927 million in the same period last year. Its fourth quarter revenue is estimated to rise 14.1% YoY to $4.55 billion. Excluding one-time charges, earnings should come at 80 cents a share, up from 70 cents last year. Wall Street hasn’t particularly been enthusiastic about eBay Inc (NASDAQ:EBAY). The consensus EPS estimate is even less than the lower end of the company’s own guidance of 67-69 cents.

Goldman Sachs said in a research note to investors that it forecasts eBay Inc (NASDAQ:EBAY)’s Marketplace revenue at $2.26 billion, up 10.2% from the previous year. Meanwhile, its PayPal revenue is expected to jump 21% YoY to $1.86 billion in Q4. PayPal accounts for more than 37% of the company’s value, and has been adding about 5 million new users every quarter. As of Q3, 2013, PayPal has more than 137.5 million users. PayPal, the payment division of eBay Inc (NASDAQ:EBAY), said recently that its total payment volume rose over 115% YoY on Thanksgiving Day and Black Friday.

eBay mobile traffic sees monster growth

Traffic tracking firm ChannelAdvisor reported that same store sales at eBay.com inched up 11.6% in the fourth quarter, compared to 18.9% in Q3. The company had also provided a cautious holiday outlook, so a deceleration in revenue growth was expected. But mobile is expected to be a bright spot for the company. According to comScore, eBay Inc (NASDAQ:EBAY)’s mobile traffic has seen a significant increase through November. The number of PayPal unique visitors grew 27.9%, Marketplaces uniques were up 123.4%. Overall, number of unique monthly mobile visitors surged 40.6% YoY.

eBay Inc (NASDAQ:EBAY) shares were little changed at $54.11 in pre-market trading Wednesday.