eBay +1.2% in spite of soft guidance; Marketplaces better than feared

EBAY expects Q3 revenue of $4.3B-$4.4B and EPS of $0.65-$0.67, below a consensus of $4.42B and $0.70. It expects 2014 revenue of $18B-$18.3B and EPS of $2.95-$3.00, in-line with a consensus of $18.2B and $2.98.

$1.7B was spent on buybacks in Q2, nearly even with Q1's $1.8B and allowing EPS to beat estimates in spite of a revenue miss.

PayPal division revenue +20% Y/Y in Q2 (to $1.74B) vs. +19% in Q1. Total payment volume growth improved to 29% from 27% - eBay payments +13%, non-eBay +35%.

PayPal active accounts rose by 4M Q/Q to 152M, and a deal was signed with GE to offer a dual-branded credit card. The related loan portfolio will be bought in 2016 for an estimated ~$1B.

Marketplaces revenue +9% (to $2.17B) vs. +10% in Q1. In spite of Google's algorithm changes and the security breach, GMV growth was steady at 12%. Active buyers rose by 3.8M Q/Q to 149M. Enterprise revenue +3% to $267M.

eBay's total enabled commerce volume rose 26% to $62B. Mobile made up 20% of the total, with mobile downloads producing 6.6M new customers.

Opex +14% Y/Y to $2.18B. Cash/investments total $12.4B, and debt $5.3B.

Q1 results, PR

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Comments (3)
  • redhat63
    , contributor
    Comments (333) | Send Message
    One year from now the company will be renamed Paypal and Ebay will be spun off. The GE branded credit card and the sale of the loan portfolio is the tell.
    16 Jul 2014, 04:50 PM Reply Like
  • xl450
    , contributor
    Comments (14) | Send Message
    why is this stock up??? at best fairly valued, at worst, it should be trading in the mid to low $40's. EBAY becoming more and more irrelevant compared to AMZN.
    16 Jul 2014, 04:50 PM Reply Like
  • SA User 74XXXXX
    , contributor
    Comments (836) | Send Message
    PayPal is the best executed mobile payment name - it can still excite investors.


    Also Doug Young said PayPal could enter China this year. Then the eBay stock will be red hot once more.


    (Thumbs down to Monetise. Investors who bought its secondary offering lost their trousers).
    17 Jul 2014, 01:59 AM Reply Like
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