Earnings Preview: eBay

| About: eBay Inc. (EBAY)

eBay (NASDAQ:EBAY) is expected to report Q1 earnings after the market close on Wednesday, April 18 with a conference call scheduled for 5:00 pm ET.


Analysts are looking for EPS of 52c on revenue of $3.15B. The consensus range is 50c-56c for EPS, and $3.1B-$3.24B for revenue, according to First Call. After reporting better-than-expected EPS and revenue in Q4, the company gave a Q1 forecast of 50c-51c in EPS and $3.05B-$3.15B in revenue. It also expects FY12 EPS $2.25-$2.30 and FY12 revenue $13.7B-$14B. In the Q4 conference call, the company said its EPS will grow slower in Q1 than in FY12 overall, but it has "increased confidence" in its FY12 outlook. The company expects mobile payment volume to increase markedly over the next year and it sees its PayPal mobile volume to reach $7B. The company is looking to expand its in-store payment presence as Home Depot (NYSE:HD) brought PayPal to nearly 2,000 stores in the U.S. Internationally, the company sees a strong investment in India and continues to work on a partnership with the Russian Post. It also remains cautiously optimistic that it will become the first foreign operator with a license to process electronic payments in China.

Analyst Views

Over the last quarter, Credit Suisse and Citigroup downgraded eBay to Neutral, and Raymond James downgraded the company to Outperform, citing valuation. Deutsche Bank also said its core business growth was slowing despite its strong results.