Earnings Preview: eBay Inc, Yum! Brands, Inc.

Updated on

eBay Inc (NASDAQ:EBAY) and Yum! Brands Inc. (NYSE:YUM) will report their fiscal second-quarter results on Wednesday, July 16 after the bell. The e-commerce giant will hold a conference call on the same day at 5:00 p.m. EDT, while Yum! Brands’s conference call is scheduled at 9:15 a.m. EDT on Thursday. Let’s have a detailed look at what analysts expect from these company’s Q2 results.

eBay Q2 earnings preview

Wall Street forecasts eBay to report $0.68 per share in non-GAAP earnings, up from $0.63 a share last year. The company’s own guidance calls for $0.67-$0.69 in EPS with $4.325-$4.235 billion in revenues. Analysts expect revenues to come in at $4.38 billion, up 13% from $3.88 billion in the same quarter a year ago.

For the full year 2014, analysts expect the San Jose-based company to generate $18.24 billion in revenues, a growth of 13.70% from FY2013. The full year consensus earnings estimate is $2.98 per share. During the first-quarter earnings call, eBay reiterated its full year guidance of $2.95-$3 in EPS and $18-$18.5 billion in revenues.

The second-quarter earnings release will show the impact of a massive cyber attack that compromised user passwords and non-financial data. The company had asked users to change their passwords. Quantcast reports that the traffic to eBay plunged about 63% since the end of March. If those numbers are accurate, that’s not a good sign for eBay. However, the number of visitors recovered in June, increasing more than 50% from May’s bottom.

Yum! Brands second-quarter preview

Yum owns many fast food restaurant brands such as Taco Bell, KFC and Pizza Hut. In May, the company named Greg Creed as its next chief executive. Yum! Brands is expected to report $0.74 per share in earnings, up from $0.56 a share in the same quarter last year. The company’s Q2 revenues are expected to increase 11.90% from $2.90 billion to $3.25 billion.

For the full year 2014, analysts expect Yum’s revenues to jump 10.90% YoY from $13.08 billion to $14.50 billion. Wall Street expects the company’s full year earnings to rise from $2.97 per share to $3.72. In March, the company declared a quarterly dividend of $0.37 per share, which was distributed on May 2 to shareholders of record on April 11. Yum has hiked its dividend at a double-digit rate every year since 2004.

Leave a Comment