eBay Tops Earnings Estimates, Misses on Revenue

The e-commerce leader for physical and digital merchandise, eBay reported better-than-expected earnings in the second quarter but revenue fell short of analysts’ expectations.

The San Jose, California-based e-commerce giant reported quarterly adjusted earnings (EPS) of $0.99 ​ per share, beating the Wall Street consensus estimates of $0.97 per share. But the company’s revenue plunged about 7% to $2.67 billion from a year earlier. That was also lower than the market expectations of $2.97 billion.

eBay forecasts revenue in the range of $2.42 billion to $2.47 billion in the third quarter. eBay’s Board of Directors has also declared a cash dividend of $0.18 per share of the company’s common stock.

eBay shares gained over 1% to $68.03 on Wednesday. The stock has gained over 30% so far this year

Analyst Comments

“Narrow-moat eBay topped consensus estimates for revenue and adjusted EPS in the second quarter, with $2.7 billion and $0.99 per share narrowly eclipsing FactSet consensus estimates of $2.6 billion and $0.96. Results presented mixed signals for investors, with revenue up 11% on a foreign exchange-neutral basis (largely attributable to better-than-expected managed payments penetration) but with the firm seeing softness in promoted listings monetization (down about 7% sequentially by our calculations) and active buyer growth (down 2% from a year ago) to 159 million,” noted Sean Dunlop, equity analyst at Morningstar.

“As the dust settles from a slew of recent corporate actions, including the divestiture of the eBay classifieds business in June and the anticipated sale of eBay’s South Korean marketplace, we anticipate raising our fair value estimate a mid-single-digit percentage, but note shares look fully valued at prevailing market prices.”

eBay Stock Price Forecast

Five analysts who offered stock ratings for eBay in the last three months forecast the average price in 12 months of $75.20 with a high forecast of $81.00 and a low forecast of $65.00.

The average price target represents a 10.56% change from the last price of $68.02. From those five analysts, four rated “Buy”, one rated “Hold” while none rated “Sell”, according to Tipranks.

Piper Sandler cut the price objective to $79 from $81. Credit Suisse raised the stock price forecast to $80 from $78. Evercore ISI lifted the target price to $70 from $66. UBS upped the price target to $67 from $65. Piper Sandler raised the target price to $81 from $71.

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