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eBay Earnings Preview: PayPal Growth

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eBay Inc (NASDAQ:EBAY) will release its earnings for the three months through September 30 after the market closes on Wednesday October 16. The company is expected to show solid earnings on strong growth from the company’s payments processor PayPal and improved resuklts from its core online marketplace.


In anticipation of the release of this report analysts studying eBay Inc (NASDAQ:EBAY) were looking for earnings per share of  63 cents from the company. Revenue for the company’s third quarter are expected to come in at $3.9 billion. In the same three months of last year eBay earned 55 cents per share on revenue of $3.4 billion.

eBay earnings

eBay has shown solid earnings in the last few quarters. The second quarter of the year ended a string of earnings beats from the company. The company’s third quarter results will be bolstered by income from the payments processor PayPal, according to analysts. The payments processor is trying to go mobile to compete with companies like Square, who have made strides in the area as PayPal remained on desktop.

Other positives for eBay Inc (NASDAQ:EBAY) in the third quarter include the increase in site traffic from earlier this year. Analysis shows that traffic is down from last year, but up from earlier in 2013.

eBay performance

eBay Inc (NASDAQ:EBAY) shares have been uneven through 2013. Since January 1 the company’s stock has increased in value by a little over 7%, but that increase has been delivered through many rises and falls. In the last three months the firm’s stock has fallen by a little over 3%.

Shares in the online marketplace are trading at around 27 times earnings, a number that suggests a belief that the firm is in for large earnings growth in the coming years. Analysts are expecting eBay Inc (NASDAQ:EBAY) to earn $2.71 per share this year, up from $2.36 in 2010. Analysts are looking for earnings of $3.19 per share form the company for the full year 2014.

This year saw eBay Inc (NASDAQ:EBAY) shares rise above an all time high set in 2004 for the first time. The company’s shares are growing in value, but there are still troubles in the air for the company. The company’s biggest competitor, Amazon.com, Inc. (NASDAQ:AMZN), has been growing at a much faster rate and has ambitions beyond those possible at eBay.

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