24 Aug

What Can You Expect from eBay in the Future?


Upbeat guidance

As we discussed previously in this series, eBay (EBAY) is successfully transforming its business, which can be seen in its strong 1H16 performance. The company expects its fiscal 2016 revenues to be in the range of ~$8.9 billion–$9.0 billion, which is higher than its earlier forecasted range of $8.6 billion–$8.8 billion. The company’s adjusted EPS (earnings per share) are expected to be in the range of $1.85–$1.90 per share, up from its earlier forecast of $1.82–$1.87 per share.

The company’s guidance includes a strong revenue performance and a favorable tax rate of 19%–20%, but adverse currency movements are expected to adversely impact its bottom line.

What Can You Expect from eBay in the Future?

For 3Q16, eBay expects its top line to be in the range of $2.16 billion–$2.19 billion, which compares favorably to analysts’ revenue expectations of $2.14 billion. The company also expects to report adjusted EPS in the range of $0.42–$0.44 per share, while analysts expect eBay to post EPS of $0.44 per share for 3Q16.

Strategic partnerships and acquisitions

Notably, the company recently entered into a partnership with CaribShopper to expand into the Caribbean market. Prior to this, eBay entered into a partnership with the e-commerce startup MailforAfrica to launch an “eBay Powered by MallforAfrica” dedicated platform.

Also, to expand the global reach of its fast growing StubHub segment, eBay has announced the acquisition of Ticketbis, a Spain-based online ticket marketplace. Ticketbis, which has a presence in 47 countries, will become part of StubHub’s business and should help eBay expand StubHub in Latin America, Europe, and Asia-Pacific. StubHub currently operates in the US, the UK (EWU), Canada, Mexico, Germany, and France. Through its Ticket Utils acquisition, eBay plans to offer sellers enhanced tools in order to manage their inventory more effectively.

Now let’s look at the analyst recommendations for eBay.

Latest articles

Is the technology sector due for a correction? Twitter (TWTR) and Intel Corporation (INTC) will release their Q3 2019 stock earnings on October 24.

The Dow Jones Industrial Index (or DJIA) is trading just 2.2% below its all-time high. But is the stock bubble about to burst?

Renaissance Technologies had a strong investment in the healthcare sector in Q2 2019. The healthcare sector makes up 18.16% of the firm's total portfolio.

This week, semiconductor equipment suppliers Teradyne Inc. (TER) and Lam Research (LRCX) will report their quarterly earnings.

Major chip companies Texas Instruments (TXN) and Xilinx (XLNX) released their earnings last week and saw their stocks fall.

On October 18, CNBC reported Bill Gross top picks. His top stock picks were Annaly Capital (NLY), Invesco (IVZ) and Allergan (AGN).