Yahoo Finance eBay Revenues Beat Estimates, Stock Slumps on Soft Guidance
eBay Inc. (EBAY) just released its third-quarter 2017 financial results, posting earnings of 48 cents per share and revenues of $2.4 billion. Currently, EBAY is a Zacks Rank #4 (Sell) and is down 4.95% to $36.09 per share in after-hours trading shortly after its earnings report was released.
eBay:
Matched earnings estimates. The company posted earnings of 48 cents per share, missing the Zacks Consensus Estimate of 48 cents.
Beat revenue estimates. The company saw revenue figures of $2.41 billion, beating our consensus estimate of $2.37 billion.
On a year-over-year basis, eBay’s net revenues climbed 9%, while its earnings per share gained 7%. Non-GAAP net income was up 1% to $514 million. GAAP operating margin decreased to 24.0% from 24.4% in the prior-year quarter, and non-GAAP operating margin decreased to 29.6% from 29.9%. Gross merchandise volume in the quarter was $21.7 billion, an increase of 8% year-over-year.
eBay’s Marketplace generated about $20.5 billion of gross merchandising volume and $1.9 billion in revenue. The company’s StubHub ticket resale platform generated $1.2 billion of gross merchandising volume and $275 million in revenue.
“In Q3, we drove acceleration across all three of our platforms, delivering strong top and bottom line financial results and our fastest volume growth in over three years,” said CEO Devin Wenig. “Our customers are responding to the significant product enhancements we have been making, and this is reflected in our results.”
The company expects Q4 revenue in the range of $2.58 billion and $2.62 billion, while GAAP earnings are expected to fall between $0.40 - $0.45 and non-GAAP earnings are projected to land between 0.57 - $0.59. This is on the low end of our current Zacks Consensus Estimate, which is calling for earnings of 59 cents per share.
Here’s a graph that looks at eBay’s earnings surprise history:
eBay Inc. Price, Consensus and EPS Surprise
eBay Inc. Price, Consensus and EPS Surprise | eBay Inc. Quote
eBay is one of the world's largest online trading communities. eBay creates a powerful marketplace for the sale of goods and services by a passionate community of individuals and small businesses. eBay enables trade on a local, national and international basis with local sites in numerous markets.
Check back later for our full analysis on eBay’s latest earnings report!
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
eBay Inc. (EBAY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
