Earnings preview: EBay 3Q profit, sales seen up

Oct 16, 2013

Online auctioneer eBay Inc. is expected to post higher revenue and earnings in the quarter through September thanks to higher transaction revenue from its websites and greater use of its payments processor PayPal.

WHAT TO LOOK FOR: Revenue from marketplaces eBay and StubHub is expected to grow about 10 percent in the quarter through September as upbeat performance domestically is expected to compensate for weakness overseas, said Benchmark analyst Daniel Kurnos in a research note. A recovery in demand from the U.K., Germany or South Korea could bolster results, he said.

Investors will also focus on eBay's outlook for the holiday quarter through December. Kurnos said he's looking for 10 percent revenue growth in its marketplaces business.

The company also announced last month that it would close on its $800 million acquisition of payments processor Braintree by the end of the year. Analysts will be watching for further commentary about Braintree's business.

WHY IT MATTERS: Ebay is one of the top e-commerce sites in the world and PayPal is a large and growing payments processor. Its results reflect consumer sentiment globally as it generates more than half of its revenue outside the U.S. About two-thirds of the value of transactions it handles from its websites are fixed-price, making the auction site a competitor to Amazon.com Inc. and Wal-Mart Stores Inc.

WHAT'S EXPECTED: Analysts polled by FactSet expect eBay to post adjusted of 63 cents per share on revenue of $3.91 billion.

LAST YEAR'S QUARTER: Ebay posted adjusted earnings of 55 cents per share on of $3.40 billion.

Explore further: EBay to buy payments company Braintree for $800M (Update)

not rated yet
add to favorites email to friend print save as pdf

Related Stories

EBay 1Q revenue grows but falls below estimates

Apr 17, 2013

EBay grew its earnings and revenue in the first quarter thanks to growth in its PayPal business and its e-commerce sites. But revenue fell shy of Wall Street's expectations, causing investors to send the company's stock lower ...

EBay posts higher 3Q earnings, revenue

Oct 17, 2012

EBay reported Tuesday that its third-quarter net income rose 22 percent thanks to higher revenue at its PayPal payments service and at the marketplaces business that includes eBay.com.

EBay posts higher 1Q net income and revenue

Apr 18, 2012

(AP) -- EBay's first-quarter net income grew 20 percent thanks to higher revenue from its PayPal business and brisk sales at its e-commerce websites. The results beat Wall Street's expectations and investors sent the company's ...

Recommended for you

New US-Spanish firm says targets rich mobile ad market

1 hour ago

Spanish telecoms firm Telefonica and US investment giant Blackstone launched a mobile telephone advertising venture on Wednesday, challenging internet giants such as Google and Facebook in a multi-billion-dollar ...

Technip, Heerema win third giant Angolan oil contract

5 hours ago

The ultra-deep Angolan offshore oil project called Kaombo generated the third huge contract in three days on Wednesday when French group Total picked two firms to carry out underwater engineering worth $3.5 billion.

Yahoo sees signs of growth in 'core' (Update)

19 hours ago

Yahoo reported a stronger-than-expected first-quarter profit Tuesday, results hailed by chief executive Marissa Mayer as showing growth in the Web giant's "core" business.

User comments : 0

More news stories

Quantenna promises 10-gigabit Wi-Fi by next year

(Phys.org) —Quantenna Communications has announced that it has plans for releasing a chipset that will be capable of delivering 10Gbps WiFi to/from routers, bridges and computers by sometime next year. ...

Unlocking secrets of new solar material

(Phys.org) —A new solar material that has the same crystal structure as a mineral first found in the Ural Mountains in 1839 is shooting up the efficiency charts faster than almost anything researchers have ...

Floating nuclear plants could ride out tsunamis

When an earthquake and tsunami struck the Fukushima Daiichi nuclear plant complex in 2011, neither the quake nor the inundation caused the ensuing contamination. Rather, it was the aftereffects—specifically, ...

New US-Spanish firm says targets rich mobile ad market

Spanish telecoms firm Telefonica and US investment giant Blackstone launched a mobile telephone advertising venture on Wednesday, challenging internet giants such as Google and Facebook in a multi-billion-dollar ...