eBay (Nasdaq: EBAY) is trading - ahead of the company's fourth
quarter earnings release, expected out after the market closes
today. Shares are -.
EBAY is expected to report EPS of $0.47 on revs of $2.49 billion.
Last quarter, the San Jose, CA-based auction site posted an EPS of
$0.40 with revs of $2.249 billion, topping the consensus estimates
looking for EPS of $0.37 and revs of $2.18 billion. In Q409, the
company produced EPS of $0.44 on revs of $2.37 billion, both
Shares gained 17.3% through the quarter, to $28.68 at the end of
December. The stock is up 2.8% since then, and finished 2010 20%
A simple valuation puts eBay with a forward P/E of 15.9x FY11 EPS
estimates. This compares to 54.2x for Amazon.com (Nasdaq: AMZN),
18.8x for Google, Inc. (Nasdaq: GOOG) and 20.8x for Yahoo! (Nasdaq:
Data from Bloomberg has 15 analysts with a Buy on EBAY, 19 with a
hold, and one suggesting to Sell. The analyst price target average
is $31, with a high of $37 and low of $20.
Janney Capital expects eBay to meet-or-exceed their expectations
calling for an EPS of $0.47 and revs of $2.46 billion. Checks point
to eBay's gross merchandise volume (GMV) coming in above their 2%
estimate. Sales were stronger in Fashion, and weaker in Consumer
Electronics and Video Games. PayPal should see growth in the 20%
Janney thinks that FY11 guidance will be conservative, based on
continuing turnaround efforts for their Marketplace segment. They
continue to believe: 1) eBay's playbook of driving traffic to its
top-rated sellers should ultimately improve the buying experience;
2) increased selection and an improved buying experience should
begin to stem market share losses; and 3) expect strong growth at
Janney currently has a Buy rating an fair value of $32 on the
BGC Partners is looking for an EPS of $0.48 and revs of $2.49
billion. They expect GMV of $14.983 billion, ex-auto, with fixed
price format accounting for 60% of transactions. MarketPlace revs
are expected to be $1.519 billion. e-Commerce transactions should
grow from $600 million in 2009, to around $2 billion in 2010, with
13 million of their mobile apps downloaded to-date.
BGC has a Buy with $35 price target on the shares.
Also notable, ChannelAdvisor data shows that same-store sales
turned negative in December (down 1.7%) from an 8% increase in
November. SSS will have grown 3.8% through Q410.
eBay is expected to release their Q410 earnings on Wednesday,
January 19, 2011, at approximately 7:00am EST. Stay tuned to
section to see our analysis of the highly-anticipated quarterly
results withi0 n seconds of their release.