eBay, Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component eBay, Inc. (NASDAQ:EBAY) will unveil its latest earnings on Wednesday, October 19, 2011. 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.

eBay, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 40 cents per share, a rise of 14.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 41 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 40 cents during the last month. For the year, analysts are projecting net income of $1.70 per share, a rise of 13.3% from last year.

Past Earnings Performance: Last quarter, the company topped estimates by 0 cents, coming in at profit of 40 cents per share against a mean estimate of net income of 39 cents. The company fell in line with estimates in the first quarter.

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Wall St. Revenue Expectations: On average, analysts predict $2.91 billion in revenue this quarter, a rise of 29.3% from the year ago quarter. Analysts are forecasting total revenue of $11.51 billion for the year, a rise of 25.7% from last year’s revenue of $9.16 billion.

Analyst Ratings: 15 out of 27 analysts surveyed (55.6%) have a buy rating on eBay.. This is below the mean analyst rating of 10 competitors, which average 82.3% buy ratings. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

A Look Back: In the second quarter, profit fell 31.2% to $283.4 million (22 cents a share) from $412.2 million (31 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 24.6% to $2.76 billion from $2.22 billion.

Key Stats:

Revenue has risen the past four quarters. Revenue rose 15.9% in the first quarter from the year earlier, climbed 5.2% in the fourth quarter of the last fiscal year from the year-ago quarter and 0.5% in the third quarter of the last fiscal year.

The decrease in profit in the second quarter came after net income rose in the previous quarter. In the first quarter, net income rose 19.7%.

Competitors to Watch: Amazon.com, Inc. (NASDAQ:AMZN), GSI Commerce, Inc. (NASDAQ:GSIC), Liquidity Services, Inc. (NASDAQ:LQDT), Google Inc. (NASDAQ:GOOG), Overstock.com, Inc. (NASDAQ:OSTK), BIDZ.com, Inc. (NASDAQ:BIDZ), Gaiam, Inc. (NASDAQ:GAIA), U.S. Auto Parts Network, Inc. (NASDAQ:PRTS), HSN, Inc. (NASDAQ:HSNI), Wal-Mart (NYSE:WMT) and Target (NYSE:TGT).

Stock Price Performance: During August 17, 2011 to October 13, 2011, the stock price had risen $2.49 (8.2%) from $30.25 to $32.74. The stock price saw one of its best stretches over the last year between January 28, 2011 and February 8, 2011 when shares rose for eight-straight days, rising 7.7% (+$2.33) over that span. It saw one of its worst periods between March 8, 2011 and March 16, 2011 when shares fell for seven-straight days, falling 6.1% (-$1.94) over that span. Shares are up $4.91 (+17.6%) year to date.

(Source: Xignite Financials)

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