eBay Inc. EBAY is expected to report second quarter EPS Wednesday after the close. Analysts are expected the company to report EPS of $0.64, better than the $0.56 reported in the same period a year ago, while revenue is expected to rise to $3.89 billion from $3.4 billion a year ago.
Accelerating Marketplaces
Goldman Sachs reiterated a buy on the stock on last Thursday heading into earnings as they are bullish on accelerating marketplaces growth. "Contrary to management's guidance for slowing growth in 2Q, ChannelAdvisor reported 18.1% growth in SSS in 2Q, up from 15.4% in 1Q. Similarly, comScore reported reaccelerating visitor growth in 2Q to 4% versus c. 1% in 1Q, while mobile grew 138% yoy in 2Q. Our current forecast is for segment revenue of $2.03bn, up 11.8% yoy, vs. 1Q's 13.3%."
Goldman sees revenue at $3.9 billion, slightly better than consensus in the quarter, while they see EPS of $0.63, $0.01 below the average forecast. However, they are bullish on the stock and reiterate a buy rating and $63 price target. "We continue to believe that, at c.17x what we believe are our relatively conservative 2014 adjusted EPS estimates, eBay represents the most compelling risk/reward in our coverage."
Second Half Key
Deutsche Bank is more cautious heading into earnings here, as they note that growth should accelerate into the second half of the year.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
