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Ebay Third Quarter Earnings Preview
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EBAY
Ebay (Nasdaq:EBAY) will announce its third quarter earnings on Wednesday, October 17, 2012. The company's stock price has climbed 23% over the last three months to close at $47.49 on October 11, 2012.
In most situations, when earnings do not meet analyst estimates, a business' stock price will tend to drop. On the other hand, when actual earnings beat estimates by a significant amount, the share price will likely surge. SEE: Earnings: Quality Means Everything
What to Expect: Ebay is expected to report 46 cents per share, up 9.5% from a year ago when the company reported earnings of 42 cents per share.
Three months ago, the consensus estimate was 47 cents. For the fiscal year, analysts are expecting earnings of $2.03 per share.
Ebay is expected to beat last year's reported revenue of $2.97 billion and come in at $3.4 billion for the quarter. The anticipated revenue for the fiscal year is $14.02 billion.
Company Performance: Over the past four quarters, Ebay has reported double-digit revenue growth. On average, the figure has risen by 29.8%. The biggest change came in the fourth quarter of the last fiscal year when revenue rose 35.5%.
Relative to the industry P/E ratio of 47.72, EBAY's 16.7 is low. Companies with low P/E ratios may find it easier to surprise the market to the upside, even if their financial performance is not as strong as that of companies with high P/E ratios. A company's price/earnings ratio (P/E ratio) provides a measure of how expensive or cheap a stock is. High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: How To Find P/E And PEG Ratios
Ebay's worst recent stretch was when its stock price fell $3.27 per share between October 4, 2012 and October 9, 2012.
The Competition: eBay is an Internet company that, together with its subsidiaries, provides online marketplaces for the sale of goods and services. It also provides other online commerce platforms, online payment solutions, and communication offerings to a diverse community of individuals and businesses. The majority of analysts (21 of 30) give Ebay a buy rating. Buy ratings have increased slightly over the last three months.
The company's closest competitor in the retail (catalog and mail order) industry is Amazon.com (AMZN). Analysts are less optimistic about Ebay than about Amazon.com. Twenty-four out of 34 analysts rate the latter a buy.
In most situations, when earnings do not meet analyst estimates, a business' stock price will tend to drop. On the other hand, when actual earnings beat estimates by a significant amount, the share price will likely surge. SEE: Earnings: Quality Means Everything
What to Expect: Ebay is expected to report 46 cents per share, up 9.5% from a year ago when the company reported earnings of 42 cents per share.
Three months ago, the consensus estimate was 47 cents. For the fiscal year, analysts are expecting earnings of $2.03 per share.
Ebay is expected to beat last year's reported revenue of $2.97 billion and come in at $3.4 billion for the quarter. The anticipated revenue for the fiscal year is $14.02 billion.
Company Performance: Over the past four quarters, Ebay has reported double-digit revenue growth. On average, the figure has risen by 29.8%. The biggest change came in the fourth quarter of the last fiscal year when revenue rose 35.5%.
Ebay's worst recent stretch was when its stock price fell $3.27 per share between October 4, 2012 and October 9, 2012.
The Competition: eBay is an Internet company that, together with its subsidiaries, provides online marketplaces for the sale of goods and services. It also provides other online commerce platforms, online payment solutions, and communication offerings to a diverse community of individuals and businesses. The majority of analysts (21 of 30) give Ebay a buy rating. Buy ratings have increased slightly over the last three months.
The company's closest competitor in the retail (catalog and mail order) industry is Amazon.com (AMZN). Analysts are less optimistic about Ebay than about Amazon.com. Twenty-four out of 34 analysts rate the latter a buy.
by
Investopedia Staff
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