eBay Earnings: Here’s Why the Stock is Falling Now
eBay Inc. (NASDAQ:EBAY) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 6.33%.
eBay Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 12.5% to $0.63 in the quarter versus EPS of $0.56 in the year-earlier quarter.
Revenue: Rose 14.1% to $3.88 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: eBay Inc. reported adjusted EPS income of $0.63 per share. By that measure, the company missed the mean analyst estimate of $0.64. It missed the average revenue estimate of $3.89 billion.
Quoting Management: “We had a strong second quarter, with $51 billion of enabled commerce volume across Marketplaces, PayPal and eBay Enterprise driving double-digit revenue and earnings growth,” said eBay Inc. President and CEO John Donahoe. “Macroeconomic headwinds in Europe and Korea will continue to be a challenge in the second half of the year. But our core businesses are strong and we continue to attract millions of new customers each quarter through mobile innovation. We remain confident in our ability to meet our goals and drive global commerce innovation and leadership.”
Key Stats (on next page)…
Revenue increased 3.44% from $3.75 billion in the previous quarter. EPS were the same at $0.63 as the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.65 and has not changed. For the current year, the average estimate has moved up from a profit of $2.74 to a profit of $2.75 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)