), reported fourth quarter numbers after the closing bell
today. Earnings Per Share came in-line with the Zacks
Consensus Estimate of $0.71, and Revenues met the Zacks Consensus
Estimate expectations of $4.5 billion.
The major areas of interest for the street were the Payments
(PayPal), and Marketplaces (The Plaza and auction site)
divisions. Most importantly, were the growth levels of
PayPal, and how the Marketplace was performing overall. But
those items were brushed aside with the announcement that Carl
Icahn was building a large position in Ebay. Currently, it
is reported that Mr. Icahn holds around 10 million shares, or
0.82% of total shares outstanding.
Mr. Icahn, like he did with
), has quickly nominated 2 new board members to the Board of
Directors, but more importantly he has issued a non-binding
proposal to split the company into two separate businesses;
PayPal as one, and the Marketplace as another standalone
company. This news has sent shockwaves through the company,
and the street as well. The company briefly commented on
Mr. Icahn's proposal by stating that the company continues to
explore business opportunities, but currently does not plan on
splitting the company up into multiple new companies.
Overall, the positives were strong, the PayPal growth levels were
within analyst's expectations, and the Marketplace came in-line
with analyst's expectations. Moreover, the company
announced a 5 billion share buyback program. But,
management did lower their Q1 2014 guidance from $0.72 to between
$0.65 and $0.67.
In afterhours trading Ebay has jumped up over 8% indicating that
the street is hyper excited about Mr. Icaha's foray into
Ebay. Zacks will have a fully detailed report into Ebay's
earnings numbers tomorrow.
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