) is set to report fourth quarter 2013 results on Jan 22. Last
quarter, it posted a 1.89% positive surprise. Let's see how
things are shaping up for this announcement.
Growth Factors this Past Quarter
eBay's third-quarter earnings beat the Zacks Consensus Estimate
by a penny. Gross revenue was up both sequentially as well as on
a year-over-year basis.
eBay's business continues to show signs of improvement. Both
Payments and Marketplaces are showing improving trends versus the
year-ago quarter, an indication of the changing business profile.
Moreover, the company also possesses a strong balance sheet. Its
drive to provide complete online solutions for traditional
retailers should further add to its growth going forward.
eBay expects fourth quarter 2013 revenues of $4.50-4.60 billion
(up 16.9% sequentially and 14.0% year over year at the
mid-point), just short of consensus expectations of $4.64
billion. The company expects to generate GAAP EPS of 67 to 69
cents and non- GAAP EPS of 79 to 81 cents. The non-GAAP EPS
guidance is better than the Zacks Consensus Estimate of 74 cents.
Our proven model does not conclusively show that eBay will beat
earnings this quarter. That is because a stock needs to have both
and a Zacks Rank of #1, 2 or 3 for this to happen. That is not
the case here as you will see below.
Zacks ESP: The expected surprise prediction for eBay stands at
0.00%. This is because both the Most Accurate estimate and the
Zacks Consensus Estimate stand at 71 cents.
Zacks Rank #4 (Sell): We caution against stocks with Zacks #4 and
#5 Ranks (Sell rated stocks) going into the earnings
announcement, especially when the company is seeing negative
estimate revisions momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
Melco Crown Entertainment Limited
), Earnings ESP of +2.56% and a Zacks Rank #2 (Buy)
), Earnings ESP of +0.96% and a Zacks Rank #1 (Strong Buy)
Multimedia Games Holding Company, Inc.
), Earnings ESP of +10.35% and Zacks Rank #1
EBAY INC (EBAY): Free Stock Analysis Report
MULTIMEDIA GAME (MGAM): Free Stock Analysis
MELCO CROWN ENT (MPEL): Free Stock Analysis
WESTERN DIGITAL (WDC): Free Stock Analysis
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