A Maturing eBay Earnings Story, at 20-Times Earnings

Before you go, we thought you'd like these...
Before you go close icon

eBay Inc. (NASDAQ: EBAY) investors have a lot to digest today after the online auction and marketplaces giant reported earnings. eBay's earnings in the third quarter came to $718 million, or $0.55 per share outside of items, and revenue rose to $3.4 billion from $3 billion a year ago. Thomson Reuters was calling for earnings of $0.54 per share and $3.41 billion in sales.

For its fourth quarter, eBay's guidance came to $0.66 to $0.69 EPS on revenue of $3.85 billion to $4 billion. Thomson Reuters has estimates of $0.68 EPS and $3.94 billion in revenue. Today's results and its guidance are in-line with estimates enough that this offers investors very little expectation for a huge surprise one way or the other.

eBay shares closed down 4-cents at $48.20 on the day. Unfortunately, that is 20.5-times the $2.34 per share earnings consensus from Thomson Reuters. That seems like too high of an earnings multiple on the surface, but that is for 15% growth to earnings and 20% growth in revenue.

eBay shares are down 0.4% at $48.00 in the after-hours session and the 52-week trading range is $28.15 to $50.65.

JON C. OGG

Read Full Story

Markets

S&P 500 2,265.20 -6.11 -0.27%
DJIA 19,799.85 -27.40 -0.14%
NASDAQ 5,552.94 -2.39 -0.04%
DAX 11,545.75 -84.38 -0.73%
HANG SENG 22,898.52 12.61 0.06%
NIKKEI 225 18,891.03 -246.88 -1.29%
USD (per EUR) 1.08 0.00 0.43%
USD (per CHF) 1.00 0.00 -0.35%
JPY (per USD) 112.78 -1.03 -0.90%
GBP (per USD) 1.25 0.01 1.05%

From Our Partners