) is set to report third-quarter 2013 results on Oct 16. Last
quarter, it posted in-line results. Let's see how things are
shaping up for this announcement.
Growth Factors this Past Quarter
eBay's strength at PayPal, fast-growing presence in the mobile
space and reinvigorated Marketplaces business led to higher sales
growth rates in the second quarter of 2013. The continuous
introduction of solutions to enhance the mobile shopping
experience and rapid consumer adoption also contributed to higher
The sale of low-value items and increased expenditure on the
product launches contained gross margin expansion in the last
For the third quarter, eBay expects to generate GAAP EPS of 49
cents to 51 cents and non GAAP EPS of 61 cents to 63 cents.
Our proven model does not conclusively show that eBay will
beat earnings this quarter. That is because a stock needs to have
both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. That is not the
case here as you will see below.
Both the Most Accurate estimate and the Zacks Consensus Estimate
stand at 54 cents. Hence, the difference is 0.00%.
Zacks Rank #4 (Sell):
We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is witnessing negative estimate revisions.
Other Stocks to Consider
You could consider other stocks with a positive earnings ESP
and Zacks Rank #1, 2 or 3 such as:
), with Earnings ESP of +2.00% and a Zacks Rank #1 (Strong
Micron Technology Inc.
), with Earnings ESP of +4.35% and a Zacks Rank #1(Strong
Advanced Micro Devices, Inc
), with Earnings ESP of +50.0% and a Zacks Rank #1 (Strong
ADV MICRO DEV (AMD): Free Stock Analysis
EBAY INC (EBAY): Free Stock Analysis Report
JARDEN CORP (JAH): Free Stock Analysis Report
MICRON TECH (MU): Free Stock Analysis Report
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