Earnings Preview: eBay

| About: eBay Inc. (EBAY)

eBay (NASDAQ:EBAY) is expected to report Q4 earnings after the market close on Wednesday, January 20 with a conference call scheduled for 5 pm ET.


Analysts are looking for a profit of 40c on revenue of $2.28B. The consensus range is 38c-42c for EPS, and revenue of $2.18B-$2.42B, according to First Call. In October, eBay guided Q4 EPS 38c-40c and revenue $2.2B-$2.3B. During Q4, eBay finalized the sale of Skype for about $2B to an investor group. ChannelAdvisor said eBay's same-store sales rose 6% in December.

Analyst Views

Collins Stewart believes the consensus estimates for eBay's 2010 and 2011 are too low and significant upside potential exists. The firm thinks eBay's changes to its Marketplace business are beginning to work now. Lazard Capital believes online holiday season spending and increased use of PayPal helped stimulate growth; the firm expects eBay will emerge as a "smaller, more nimble, and highly profitable platform for online commerce" in the long-term. Analysts and investors will listen for comments on possible Marketplace changes. eBay shares were unchanged in the quarter.