Back to top

Analyst Blog

eBay Inc. (EBAY - Analyst Report) is set to report second quarter 2013 results on Jul 17. Last quarter, it posted a 3.7% positive surprise. Let’s see how things are shaping up for this announcement.

Growth Factors this Past Quarter

eBay’s strength at PayPal, fast-growing presence in the mobile space and reinvigorated Marketplaces business all led to higher sales growth rates in the first quarter of 2013. The continuous introduction of new solutions to enhance the mobile shopping experience and rapid consumer adoption also contributed to higher sales.

The sale of low-value items and increased expenditure on the launch of various new products contained gross margin expansion in the last quarter.

For the second quarter, eBay expects to generate GAAP EPS of 48 to 50 cents and non GAAP EPS of 60 to 62 cents.

Earnings Whispers?

The Zacks Consensus Estimate for the second quarter stands at 54 cents per share while that for fiscal 2013 stands at $2.40.

eBay has beaten estimates in all of the last four quarters, with a trailing four-quarter average positive surprise of 5.87%.

There have been no estimate revisions in the last 30 and 60 days. As a result, the Zacks Consensus Estimate for the second quarter as well as for 2013 has remained unchanged over the same time frame. The stock carries a Zacks Rank #3 (Hold).

We caution against stocks with Zacks Ranks #4 and #5 (Sell rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.

Other Stocks to Consider

Our model states that a stock needs to have both a positive earnings expected surprise prediction or ESP (Read: Zacks Earnings ESP: A Better Method) and a Zacks Rank #1, #2 or #3 to beat earnings estimates. You could, therefore, consider the following stocks instead: 

SanDisk Corp. (SNDK - Analyst Report), with an ESP of +4.55% and a Zacks Rank #1 (Strong Buy)

Syntel Inc. (SYNT - Snapshot Report), with an ESP of +3.81% and a Zacks Rank #1 (Strong Buy)

Scientific Games Corporation (SGMS - Analyst Report), with an ESP of +100.0% and a Zacks Rank #2 (Buy)

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SIGNET JEWE… SIG 116.37 +7.72%
CHYRONHEGO… CHYR 2.72 +5.84%
US SILICA H… SLCA 70.72 +4.00%
MALLINCKROD… MNK 80.11 +2.32%
RF MICRO DE… RFMD 11.76 +2.31%