The e-commerce leader for physical and digital merchandise eBay is expected to report its second-quarter earnings of $0.97 per share, which represents a year-over-year decline of over 10% from $1.08 per share seen in the same quarter a year ago.
The San Jose, California-based e-commerce giant would post revenue growth of about 4% to $2.97 billion. The company has beaten earnings per share (EPS) estimates at all times in the last four quarters.
According to ZACKS Research, for the second quarter of 2021, eBay expects net revenues of $2.98-$3.03 billion. On an FX-neutral basis, year-over-year growth in revenues is anticipated to be 8-10%. Non-GAAP earnings are anticipated to be 91-96 cents per share.
eBay shares have gained over 30% so far this year. But the stock fell 0.21% to $65.35 on Monday.
“eBay reports 2Q21 earnings on 8/11 AMC. We updated our model to reflect the sale of the South Korea biz, which is expected to close late 4Q21 / early 1Q22 and mgmt’s recent coloron eBay ramping its ’21 share buyback to $5BN vs. $2BN with the close of the Classified’s biz sale implying ~$4.7BN in buybacks from 2Q-4Q. Given the model changes, DCF-based PT to $72 vs. $65, maintain Market Perform,” noted John Blackledge, equity analyst at Cowen.
“We estimate total revenue of $2.8BN, +24.5% y/y vs expected +29.5% y/yin 2Q21 and +25.5% y/y in 3Q20. We forecast US Marketplace revenue +10% y/y in 3Q21vs +21% in 2Q21, and Int’l Marketplace revenue of +5.3% y/y vs. our estimated +6.6% y/y in2Q21. We now forecast Adj. EBITDA of $915BN, down (2.9%) y/y, implying3Q21 EBITDA margin of 32.5%. We now forecast 3Q21 Adj. EPS of $0.87 vs. $1.10.”
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 15.07% change from the last price of $65.35. From those five analysts, four rated “Buy”, one rated “Hold” while none rated “Sell”, according to Tipranks.
Several other analysts have also updated their stock outlook. 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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This article was originally posted on FX Empire