eBay Beats Estimates, Analysts See 'Solid' Results Overall

© Reuters. eBay (EBAY) Beats Estimates, Analysts See 'Solid' Results Overall

By Senad Karaahmetovic

Shares of eBay (NASDAQ:EBAY) are slightly up in premarket trading after the e-commerce giant reported better-than-expected Q2 adjusted EPS and revenue.

The company reported second quarter adjusted EPS from continuing operations of 99c, topping the consensus estimates of 90c. Net revenue stood at $2.42 billion, beating the estimated $2.37 billion.

eBay reported Q2 gross merchandise volume of $18.55 billion, down 18% YoY, though above the expected $18.23 billion. The number of active buyers totaled 138 million in the quarter, short of the consensus projection of 142.3 million.

Looking ahead, eBay expects Q3 adjusted EPS from continuing operations in the range of 89c to 95c, while analysts were expecting 91c per share. Net revenue is expected to range between $2.29 billion and $2.37 billion, compared to analyst expectations of $2.3 billion.

For the full fiscal year, the company expects adjusted EPS from continuing operations in the range of $3.95 to $4.10, up from the previous forecast of $3.90 to $4.10, and compared to the estimated $3.99 per share. eBay expects FY net revenue in the range of $9.6 billion to $9.9 billion, while analysts were estimating $9.67 billion.

The e-commerce company announced a cash dividend of 22c per share.

“EBay is in a stronger position today than it was when we entered the pandemic. Despite rising inflation, and an uncertain macro environment, we remain on track to deliver on our 2022 commitments,” CEO Jamie Iannone said.

A Piper Sandler analyst slashed the price target to $59 from $63 despite the “solid” results delivered by eBay. He said the company has continued to deliver progress “on focus categories.”

“Plus, payments remains another opportunity and advertising continues to outpace GMV growth. All in, few surprises and a quarter characterized by methodical execution,” the analyst added.

A Susquehanna analyst is less bullish than his colleague at Piper Sandler.

“The 2022 outlook remained unchanged, as EBAY continues to focus on its strategic pivot. We believe the revamped strategy will take a while to play out and thus maintain our Neutral,” the analyst wrote in a client note.