EBay Quarterly Earnings Analysis: By the Numbers

Earns eBay
AP/Ben Margot

EBay (EBAY) just reported its preliminary financial results for the quarter that ended Sept. 30, based upon which we provide a unique corporate earnings release based analysis of its performance. Our analysis focuses on the company's performance for the same quarterly period on a year-on-year basis (unless stated otherwise).

EBAY-US is one of the first companies amongst its peer group to announce earnings for this period.

Here are the highlights:

  • Summary numbers: Revenues of $4.353 billion, Net Earnings of $673 million and EPS of $0.54. Performance focus more on top-line than bottom-line: same period year-on-year revenue change of 12.02% vs. change in earnings of -2.32%.

  • Gross margins now 75.14% from 75.63% compared to the same period last year, EBITDA margins now 26.33% from 29.64%

  • Ability to strengthen the balance sheet? Year-on-year change in Operating Cash Flow of 2.55% better than change in earnings.

  • Earnings decline from operating margin decreases as well as from unusual items