Earnings Preview: eBay

Apr.26.11 | About: eBay Inc. (EBAY)

eBay (NASDAQ:EBAY) is expected to report Q1 earnings after the market close on Wednesday, April 27 with a conference call scheduled for 5 pm ET. Analysts are looking for EPS of 46c on revenue of $2.48B.


The consensus range is 44c-49c for EPS, and $2.44B-$2.52B for revenue, according to First Call. In January, eBay guided Q1 EPS 44c-46c on revenue $2.4B-$2.5B . For FY11 EPS it sees $1.90-$1.95 vs. consensus $1.94, on revenue $10.3B-$10.6B vs. consensus $10.48B. In February, eBay guided FY13 revenue $13B-$15B compared to $9.2B in FY10, and compound annual EPS growth 10%-14%. The company said it expects the growth in the three-year period to be driven by continued strong global momentum at PayPal, sustainable growth at eBay, and a doubling of mobile gross merchandise volume to $4B in FY11. During the quarter, eBay announced the acquisition of GSI Commerce (GSIC) for $29.25 per share in cash, or about $2.4. eBay said it expects that the acquisition will be immaterial to 2011 non-GAAP EPS guidance. Additionally, eBay acquired WHERE, a company that helps mobile phone users get information on local businesses.

Analyst Views

As for quarterly results, Caris views eBay's changes to Marketplace as an incremental positive as the change may help eBay increase GMV per listing and realize better effective take rate. ThinkEquity believes eBay will report higher than expected Q1 EPS. Analysts and investors will listen for comments on growth at PayPal and Marketplace, as well as an update on the use of eBay.com and PayPal on mobile devices.