Analysts pessimistic on eBay as management looks for something new
Wall Street, confound it, expects retailers to still make a profit during one of the worst retail environments in history. E-retailer eBay (EBAY) reports its first-quarter earnings today, and pessimistic analysts were scoffing that the expected return of 33 cents per share on $1.94 billion in revenue forecast by Thomson Reuters would not be enough profit to inspire confidence in the company's ability to generate further growth.
In its earnings preview, the Associated Press cites a note from Jeffries & Co. analyst Youssef Squali, who expects eBay management to meet expected earnings and give "a cautious outlook for the rest of the year due to weakened consumer demand and eBay's ongoing work to improve its marketplace." That's hardly a vote of confidence, but that sentiment is understandably fueled by fears the recession will worsen.