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

|About: eBay Inc. (EBAY)|By:, SA News Editor

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