With a market cap of $30.6 billion, eBay Inc. (EBAY) is a global online marketplace that connects buyers and sellers worldwide through its website, eBay.com, mobile apps, and off-platform businesses. The San Jose, California-based company enables users worldwide to list, sell, and purchase a diverse range of products, solidifying its position as a leader in online marketplaces. EBAY is expected to announce its fiscal Q4 earnings results on Tuesday, Feb. 25.
Ahead of this event, analysts expect the e-commerce company to report a profit of $0.96 per share, up 21.5% from $0.79 per share in the year-ago quarter. The company has met or surpassed Wall Street's earnings estimates in two of the last four quarters while missing on two other occasions. In Q3, EBAY missed the consensus EPS estimate by 5.3%.
For fiscal 2024, analysts expect EBAY to report an EPS of $3.87, up 23.3% from $3.14 in fiscal 2023.
Shares of eBay have climbed 54.1% over the past 52 weeks, outperforming both the S&P 500 Index's ($SPX) 25.3% surge and the Consumer Discretionary Select Sector SPDR Fund's (XLY) 32.3% return over the period.
Despite reporting better-than-expected Q3 adjusted earnings of $1.19 per share and revenue of $2.6 billion on Oct. 30, eBay shares tumbled 8.2% the next day due to disappointing guidance for the crucial holiday shopping season. The company’s Q4 revenue forecast of $2.5 billion - $2.6 billion missed analysts' expectations, and its projected EPS range of $1.17 - $1.22 was below the consensus. Concerns over weakening active buyer growth, which rose just 1% year-over-year to 133 million, further added to investor uncertainty. Additionally, while eBay delivered solid advertising and GMV growth, the guidance shortfall overshadowed these positives, sparking fears of a slower near-term growth trajectory.
However, eBay stock jumped to a three-year high on Jan. 8 after news that Meta Platforms (Facebook) tests eBay ads on its Facebook Marketplace to address European regulatory pressures. This collaboration opens eBay to Facebook's massive user base, offering a potential boost to eBay's stagnating growth metrics, including active buyer numbers and merchandise volume.
Analysts' consensus view on eBay’s stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 29 analysts covering the stock, nine recommend "Strong Buy," one suggests "Moderate Buy," 17 indicate “Hold,” one advises "Moderate Sell," and one gives "Strong Sell." As of writing, eBay is trading above the average analyst price target of $64.52.
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