Inside eBay’s Upcoming Second Quarter Earnings Release

S&P 500 (NYSE:SPY) component eBay Inc. (NASDAQ:EBAY) will unveil its latest earnings on Wednesday, July 20, 2011. eBay Inc. 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. Now that Borders is Gone, Which Companies Win?>>

eBay Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 39 cents per share, a rise of 11.4% 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 40 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 39 cents during the last month. For the year, analysts are projecting profit of $1.68 per share, a rise of 12% from last year.

Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the first quarter, the company reported net income of 40 cents per share versus a mean estimate of profit of 40 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by 4 cents.

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Wall St. Revenue Expectations: On average, analysts predict $2.6 billion in revenue this quarter, a rise of 17.1% from the year ago quarter. Analysts are forecasting total revenue of $10.8 billion for the year, a rise of 17.9% from last year’s revenue of $9.16 billion.

Analyst Ratings: 17 out of 33 analysts surveyed (51.5%) have a buy rating on eBay.. This is below the mean analyst rating of 10 competitors, which average 61.1% buy ratings.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 15.9% to $2.55 billion in first quarter. The figure rose 5.2% in the fourth quarter of the last fiscal year from the year earlier, climbed 0.5% in the third quarter of the last fiscal year from the year-ago quarter and 5.6% in the second quarter of the last fiscal year.

The increase in profit in the first quarter comes after net income fell in the previous quarter. In the first quarter, net income rose 19.7% to $475.9 million. In the fourth quarter of the last fiscal year, net income fell 58.7%.

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), Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Best Buy (NYSE:BBY), Barnes & Noble (NYSE:BKS) and HSN, Inc. (NASDAQ:HSNI).

Stock Price Performance: During June 15, 2011 to July 18, 2011, the stock price had risen $5.10 (18%) from $28.66 to $33.76. 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 $5.93 (+21.31%) year to date.

(Source: Xignite Financials)

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