Earnings Preview: eBay

| About: eBay Inc. (EBAY)

eBay (NASDAQ:EBAY) is expected to report Q2 earnings after the market close on Wednesday, July 18 with a conference call scheduled for 5:00 pm ET.


Analysts are looking for EPS of 55c on revenue of $3.36B. The consensus range is 54c-47c for EPS, and $3.27B-$3.45B for revenue, according to First Call. After reporting better-than-expected EPS and revenue in Q1, the company gave a Q2 forecast of 53c-55c in EPS and $3.25B-$3.35B in revenue. It also forecast FY12 EPS $2.30-$2.35, consensus $2.35, and FY12 revenue $13.8B-$14.1B, consensus $13.98B. In May, CEO John Donahoe said that PayPal will double in three years with expanding margins, and that the core eBay business will grow 10%-15% in that time. Analysts and investors will pay attention to figures on the company's marketplaces unit and PayPal, and will listen for comments on the company's plans to expand PayPal beyond the Internet. The company previously said it would explore new forms of payment on TV and other devices.

Analyst Views

In the year-ago quarter, eBay reported adjusted EPS of48c on revenue of $2.76B. Pacific Crest expects eBay to provide weaker than expected Q3 guidance but it remains positive on the company's long-term outlook. Wedbush expects eBay to outperform as it transforms into a payments driven company and extends beyond online. Goldman said eBay remains a top pick in the group given healthy overall demand, PayPal share growth, and benefits from investment in the marketplace.

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