Earnings Preview: eBay

Oct.19.10 | About: eBay Inc. (EBAY)

eBay (NASDAQ:EBAY) is expected to report Q3 earnings after the market close on Wednesday, October 20 with a conference call scheduled for 5 pm ET.

Guidance

Analysts are looking for a profit of 37c on revenue of $2.18B. The consensus range is 34c-38c for EPS, and revenue of $2.12B-$2.27M, according to First Call. On September 21, the online retailer said it expects Q3 results to be near the high end of the guidance provided on July 21, which called for EPS of 35c-37c on revenue of $2.13B-$2.18B. In July, the company also guided FY10 EPS $1.60-$1.65 vs. First Call consensus of $1.62 on revenue of $8.8B-$8.9B vs. consensus of $9B.

Analyst Views

RBC Capital recently predicted that eBay will report a sequential increase of about 120 basis points in U.S. non-auto GMV growth in Q3, along with better than expected take rates. Caris analysts also said this quarter that the turnaround of eBay Marketplaces is on track, despite the departure of its president, Lorrie Norrrington.