The Street appears to be growing more optimistic that eBay’s (NASDAQ:EBAY) first quarter results could beat expectations.
J.P. Morgan’s Imran Khan wrote today that based on analysis of both listings and revenue per listing, he is “comfortable” that the company is “tracking ahead of Street consensus” for the quarter of $1.71 billion in revenue and profits of 30 cents a share. He says quarter-to-date listings are tracking up 8% year-over-year, or 11% ex-China and Taiwan.
U.S. listings are up 2%, ex-Motors and Stores, but down 0.9% overall. Khan maintains his Overweight rating on the stock, asserting that “better than expected revenue growth and improving margins will lead to multiple expansion and relative stock price outperformance.”
Meanwhile, Scott Devitt, internet analyst at Stifel Nicolaus, this morning advised investors that there are four reasons investors should be buying the stock ahead of the company’s mid-April report on first quarter results:
Sees first quarter revenue in line on 13% listings growth and double-digit year-over-year revenue per listing trends. PayPal unaffected by competitor initiatives - Google (NASDAQ:GOOG) Checkout - in payments. Skype working on several initiatives “that could be meaningful over time.” He singles out a feature that embeds into the browser and automatically changes any static phone number into a click-to-call, as well as a $29.95 per year plan for calls in the U.S. and Canada. He thinks eBay could become more aggressive about buying back stock, and potential could “initiate a structured recapitalization.”
Today, eBay is up 24 cents at $31.98.
EBAY 1-yr chart