eBay +++

eBay Manages Expectations - Perhaps Too Well

If eBay explained this better in their Call and the Press Releases there would not have been any sell off today, it would have been positive. (see below)

"In announcing Q3 earnings earlier this afternoon, the company projected Q4 EPS of 38-40 cents a share, which put the midpoint at 39 cents, or a penny below the Street consensus at 40 cents. But eBay CEO John Donahoe explained in an interview with Tech Trader Daily this afternoon that the guidance is based on the assumption that the company’s planned sale of Skype closes in the middle of the quarter. He says that factor reduced the forecast by about 5%, or around two cents a share; add that back in and you get a range of 40-42 cents, a mid-point of 41 cents, and a forecast ahead of the Street. (That, of course, assumes analysts hadn’t already reflected in their numbers a mid-quarter close for the Skype deal.) Revenue guidance for the quarter likewise would move up a bit if you back out the impact of the Skype transaction, and push the number up to around $2.35 billion, from $2.25 billion, ahead of the Street at $2.26 billion."