Is eBay Inc On The Move This Quarter? Here’s What To Watch by Estimize
eBay, Inc. (EBAY) Information Technology – Internet, Software & Services | Reports April 26, After Market Closes
eBay Inc 1Q Earnings – Key Takeaways
- The Estimize consensus is calling for EPS of $0.45 on revenue expectations of $2.08 billion, right in line with Wall Street on both the top and bottom
- Predictably, eBay has lost a large portion of its market share to Amazon, which dominates ecommerce
- Almost 3 quarters removed from its separation with PayPal, eBay has still not recovered and doesn’t appear to be anytime soon
- What are you expecting for EBAY? Get your estimate in here!
Online auction house, eBay is scheduled to report first quarter earnings Tuesday, after the market closes. eBay is one of the pioneers of ecommerce but has recently fallen by the wayside to Amazon and up and coming marketplaces in Etsy and Groupon. Meanwhile earnings are still struggling to rebound after the company spun off PayPal into its own publicly traded entity. As you might suspect earnings have been lackluster lately, seeing a huge drop in the third quarter last year. Unfortunately, expectations this quarter remain in the gutter as many banks begin to downgrade the stock.
The Estimize consensus is calling for EPS of $0.45 on revenue expectations of $2.08 billion, right in line with Wall Street on both the top and bottom. In the past 3 months, earnings per share have been cut 9% and revenue 5% over waning concerns of the near and long term potential. Compared to the year prior, current estimates reflect a 41% decline on the bottom line with sales falling as much as 53%. Shockingly, the stock typically moves up during earnings season with peak gains coming 30 days following earnings.
Most of eBay’s problems have come from its inability to crack Amazon’s stranglehold in the ecommerce market. Ebay’s innovative platform, which resonated with consumers in the early 2000s, has been largely replaced with cheap online marketplaces. Last quarter, the online auction house reported declines in key financial metrics while active buyers surprisingly increased from the third quarter. Despite a small bump in users, net spend has steadily declined in both domestic and international markets. As its core business continues to falter, eBay is attempting to retool itself to fall more in line with Amazon. This includes offering more “buy now” options and pushing its mobile app. In the meantime, stiff competition and it’s separation from PayPal will have a substantial drag on growth.
Do you think EBAY can beat estimates? There is still time to get your estimate in here!