In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from EBAY and the news from its closest competitors.
Recent EPS Actuals vs. Estimates
The company has met or beaten analysts' estimates in the last four quarters. In the last quarter it reported $0.55 EPS, beating analyst estimates of $0.52.
The consensus EPS estimate is $0.55 based on 30 analysts' estimates, up from $0.48 a year ago. Revenue estimates are $3.36B, up from $2.76B a year ago. The median target price by analysts for the stock is $45.00.
Average recommendation: Overweight
Analyst Upgrades and Downgrades
- On June 26, 2012, Needham initiated Buy rating for the company.
- On April 19, 2012, UBS reiterated Buy rating for the company.
- On April 19, 2012, Canaccord Genuity reiterated Hold rating for the company.
- On April 18, 2012, the company was upgraded from Hold to Buy at The Benchmark Company.
- On June 21, 2012, Reuters reported that eBay Inc said it plans to build a data center powered by startup Bloom Energy's renewable energy fuel cells, a more environmentally-friendly alternative to drawing power from the mostly coal-based electric grid.
- On June 21, 2012, Longview, Texas-based InNova Patent Licensing LLC has filed patent infringement lawsuits against 24 tech companies accused of infringing an InNova patent used in e-mail spam technology.
- On May 9, 2012, PRIMEDIA announced that it has completed the acquisition of eBay Inc.'s Rent.com subsidiary.The intent to acquire Rent.com was announced on March 22, 2012.
- On April 18, 2012, eBay Inc. announced that for second quarter of 2012, it expects net revenues in the range of $3.250 billion- $3.350 billion, GAAP earnings per diluted share in the range of $0.49-$0.51 and non-GAAP earnings per diluted share (EPS) in the range of $0.53-$0.55. For fiscal 2012, it expects net revenues in the range of $13.8 billion-$14.1 billion, GAAP earnings per diluted share in the range of $1.91-$1.96 and non-GAAP earnings per diluted share in the range of $2.30-$2.35. According to I/B/E/S Estimates, analysts are expecting the Company to report revenue of $3.358 billion and $0.54 for second quarter of 2012; revenue of $13.9 billion and EPS of $2.30 for fiscal 2012.
- On April 16, 2012, Reuters reported that PT Telekomunikasi Indonesia Tbk will form a joint venture (JV) e-commerce firm with eBay Inc. Telkom will own 60% of the JV PT MetraPlasa with eBay holding the rest, with operations starting next year.
- On February 27, 2012, eBay Inc. announced a new partnership with major carrier Three.co.uk; strategic integrations with merchants such as Yotel and Entradas.com; and mobile app updates that evolve mobile commerce selling and shopping experiences for consumers.
- On January 18, 2012, eBay Inc. announced that for the first quarter of 2012, it expects net revenues in the range of $3.05-$3.15 billion with GAAP earnings per diluted share in the range of $0.37-$0.38 and non-GAAP earnings per diluted share in the range of $0.50-$0.51. For fiscal 2012, it expects net revenues in the range of $13.7-$14.0 billion with GAAP earnings per diluted share in the range of $1.76-$1.81 and non-GAAP earnings per diluted share in the range of $2.25-$2.30. According to I/B/E/S Estimates, analysts are expecting the Company to report revenue of $3.16 billion and EPS of $0.54 for the first quarter of 2012; revenues of $13.6 billion and EPS of $2.31 for fiscal 2012.
eBay Inc. could be compared to Amazon.com Inc. (AMZN), Google Inc. (GOOG), and Overstock.com Inc. (OSTK). Below is the table comparison of the most important ratios between these companies and the industry.
Below is the chart comparison with the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.
Competitors' Latest Development
- On July 10, 2012, Reuters reported that Google Inc. is close to paying $22.5 million to settle charges that it bypassed the privacy settings of customers using Apple's Safari browser, the Wall Street Journal reported, citing officials briefed on the settlement terms.
- On July 4, 2012, The Economic Times reported that Google Inc. has announced closure of five of its products, including iGoogle, Google Video and Google Chatback, in order to streamline its business.
- On July 2, 2012, Reuters reported that Google Inc. has offered to settle antitrust charges following an ultimatum by EU regulators investigating its business practices, in a move that could stave off a hefty fine.
- On June 30, 2012, Reuters reported that U.S. antitrust regulators are investigating whether Google Inc. unit Motorola Mobility is living up to licensing commitments made when its patents were adopted as industry standards.
- On June 27, 2012, Reuters reported that Google Inc. has unveiled its first tablet PC. The Nexus 7 tablet has been built and co-branded in partnership with hardware maker Asus.
- On June 24, 2012, Reuters reported that Research In Motion, Ltd. is considering splitting its business in two, separating its struggling handset manufacturing division from its messaging network, The Sunday Times reported.
- On June 23, 2012, Reuters reported that a U.S. judge on Friday ruled that Apple Inc. cannot pursue an injunction against Google Inc.'s Motorola Mobility unit, effectively ending a key case for the iPhone maker in the smartphone patent wars.
- On June 14, 2012, Reuters reported that a U.S. judge has agreed to hear Apple Inc's request for an injunction against the sale of some Motorola phones, giving the iPhone maker a chance to head off a damaging ruling in the smartphone patent wars.
- On June 13, 2012, Reuters reported that Apple Inc must defend against a lawsuit accusing it of letting advertisers secretly track the activity of millions of mobile device users, a federal judge ruled, but Google Inc and several other defendants were dismissed from the case.
- On June 5, 2012, Dow Jones reported that Google Inc. on Tuesday announced it acquired Quickoffice, the mobile-productivity software suite known for its Android and iOS document-editing applications.
- On June 5, 2012, Reuters reported that Google Inc. will buy Meebo Inc, a startup that helps online publishers connect their websites with social network sites, Meebo said on its blog.
- On June 1, 2012, Google Inc. announced that it has filed a complaint with the European Commission against Nokia Oyj and Microsoft Corp. Google has accused Nokia Oyj and Microsoft Corp of colluding against rivals in the use of their smartphone patents.
- On May 29, 2012, Reuters reported that a French court ruled that Google Inc. is not responsible for filtering content on YouTube, asTF1 - Television Francaise 1 SA sought damages for copyrighted sports and movies which ended up on the video-sharing website.
- On May 24, 2012, Reuters reported that a German regional court ruled in a hearing on Thursday that Google Inc.'s Motorola Mobility infringed Microsoft Corp patents by offering the option on its mobile phones to send a longer text in a batch of several messages.
- On May 23, 2012, Reuters reported that Google Inc.'s Android mobile platform has not infringed Oracle Corporation's patents, a California jury decided, putting an indefinite hold on Oracle's quest for damages in a legal fight between the two companies over Smartphone technology.
- On May 22, 2012, Google Inc. announced that the acquisition of Motorola Mobility Holdings, Inc.(MMI) has closed, with Google acquiring MMI for $40.00 per share in cash.
- On May 21, 2012, Reuters reported that the European Union's antitrust Chief on Monday ratcheted up the pressure on Google Inc., giving it a matter of weeks to settle an investigation into allegations of anti-competitive behaviour and avoid formal charges and a possible fine.
- On May 17, 2012, Reuters reported that Iran's Foreign Ministry threatened on Thursday to take legal action against Google Inc. for dropping the name Persian Gulf from its Google Maps and leaving the waterway between Iran and Arab states nameless, state television reported.
- On May 8, 2012, Reuters reported that Google Inc. infringed some of Oracle Corp's copyrights on the Java programming language, a U.S. jury found on Monday after days of deliberation.
- On May 7, 2012, The Wall Street Journal Online reported that India has launched an antitrust probe of Google Inc.'s online advertising business to investigate potential anticompetitive practices, government officials familiar with the matter say, marking the latest setback for the Internet company in an emerging market where it has lofty ambitions.
- On May 7, 2012, Rompres reported that five new United States companies will be listed on the Alternative Trading System of the Bucharest Stock Exchange International Department, starting on May 10, 2012.
- On April 26, 2012, Trimble Navigation Limited announced that it has entered into a definitive agreement to acquire SketchUp, one of the 3D modeling tools in the world, from Google.
- On April 19, 2012, Reuters reported that Apple Inc, Google Inc, Intel Corp and four other technology companies were ordered by a judge to face an antitrust lawsuit claiming they illegally conspired not to poach each other's employees.
- On April 16, 2012, Reuters reported that Google Inc. has been fined $25,000 for impeding a U.S. investigation into the Company's data collection for its Street View project, which allows users to see street level images when they map a location.
- On April 2, 2012, Reuters reported that Oracle Corporation and Google Inc. property lawsuit and the companies' lawyers should prepare for trial, a U.S. magistrate judge ruled on Monday.
- On March 28, 2012, Reuters reported that Google proposed to pay Oracle a percentage of Android revenue if Oracle could prove patent infringement of the mobile operating technology at an upcoming trial, but Oracle rebuffed the offer as too low, according to a court filing late on Tuesday.
- On March 28, 2012, Opera Software ASA announced that the company and Google Inc. have extended the expiration of their current desktop search agreement for two months. Initially the agreement was to expire on March 31, 2012.
- On March 17, 2012, Reuters reported that the U.S. Federal Trade Commission is examining whether Google Inc. deceived consumers by planting so-called Internet cookies in Apple's Web browser without users' consent, Bloomberg reported on Friday.
- On March 13, 2012, Dow Jones reported that an Indian court on Tuesday deferred until May 23 hearing of a case against 20 companies, including Microsoft Corp., Google Inc. and Facebook Inc, which face charges that they failed to censor objectionable content from their websites.
- On March 7, 2012, Dow Jones reported that Google Inc. is looking to sell Motorola Mobility Holdings Inc.'s set-top box business ahead of closing on the $12.5 billion acquisition, The New York Post reported.
- On February 28, 2012, Reuters reported that Microsoft Corp and several other firms have complained to EU antitrust regulators about Google Inc.'s social networking tool, in a move that may prompt the EU to broaden its ongoing investigation into Google.
- On February 22, 2012, Reuters reported that Microsoft Corp. has asked EU antitrust regulators to intervene in a patent dispute with Google Inc, and Motorola Mobility Holdings Inc., as it stepped up its battle against Google.
- On February 16, 2012, Reuters reported that the Chinese Commerce Ministry is reviewing Google Inc.'s $12.5 billion purchase of Motorola Mobility Holdings Inc. The ministry's Anti-Monopoly Bureau is looking at the deal, spokesman Shen Danyang said at a regular press briefing.
- On February 14, 2012, Reuters reported that U.S. and European regulators approved Google Inc's $12.5 billion purchase of Motorola Mobility Holdings Inc, and said they would keep a sharp eye on the web search giant to ensure patents critical to the telecom industry would be licensed at fair prices.
- On February 14, 2012, Reuters reported that India's government is investigating whether local units of U.S. Internet giants Google Inc. and Yahoo! Inc. may have violated the country's foreign exchange laws, the Wall Street Journal reported.
- On February 9, 2012, Reuters reported that the United States Department of Justice is likely to clear Google Inc.'s buy of Motorola Mobility Holdings Inc as early as next week, a Wall Street Journal reported.
The stock has a market capitalization of $51.58B and is currently trading at $39.95 with a 52 week range of $26.86 - $43.94. The stock's year-to-date performance has been 31.72%. It is currently trading above 200SMA, but below 20and 50SMA.
Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.