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eBay (EBAY) to Report Q3 Earnings: What's in the Offing?
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eBay (EBAY - Free Report) is scheduled to report third-quarter 2022 results on Nov 2.
For the third quarter, EBAY expects net revenues of $2.29-$2.37 billion. On an FX-neutral basis, the metric is anticipated to decline 5-2% from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for revenues is pegged at $2.32 billion, implying a decline of 7.4% from the year-ago period’s reported figure.
EBAY anticipates non-GAAP earnings per share between 89 cents and 95 cents. The consensus mark for earnings stands at 94 cents per share, which has been unchanged over the past 30 days. The consensus mark improved 4.4% from the year-ago quarter’s reported figure.
EBAY beat on earnings in all of the trailing four quarters, the average surprise being 4.8%.
eBay’s third-quarter results are likely to reflect strong performance of the advertising business owing to the growing adoption of new products and increased optimization.
Strength in Promoted Listings is expected to have helped eBay gain momentum among sellers. Also, solid promoted listings momentum might have continued driving eBay’s advertising revenues.
EBAY is gaining traction among small business owners who are leveraging the Marketplace to expand their customer reach. The increasing number of small businesses is expected to have attracted more shoppers to the EBAY platform.
Continuous efforts to strengthen the Authenticity Guarantee service for acquiring loyalty of customers are expected to have driven top-line growth in the to-be-reported quarter.
eBay is consistently adding sellers and expanding categories to its Refurbished program to enhance customer satisfaction. This might have remained another positive.
EBAY is expected to have gained momentum among collectible enthusiasts on the back of its robust tools. This is likely to have benefited its trading card business in the quarter to be reported.
During the third quarter, eBay completed the takeover of the myFitment group of companies to strengthen its parts and accessories category. The acquisition’s impact is likely to be reflected in the upcoming quarterly results.
However, the softness in transactional activities on eBay’s platform is expected to have been a headwind during the quarter to be reported.
Rising competitive pressure from e-commerce giants like Amazon is likely to have continued posing a challenge to eBay’s market position.
Uncertainties related to the coronavirus pandemic, impacts of the Russian-Ukraine war, supply-chain constraints and inflationary pressures are likely to get reflected in the impending quarterly results.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for eBay this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here, as you see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
eBay has an Earnings ESP of -0.71% and a Zacks Rank #3 at present.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Baidu is set to report third-quarter 2022 results on Nov 16. The Zacks Consensus Estimate for BIDU’s earnings is pegged at $2.44 per share, suggesting an increase of 7.02% from the prior-year period’s reported figure.
The Trade Desk (TTD - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank of 2 at present.
The Trade Desk is scheduled to release third-quarter 2022 results on Nov 9. The Zacks Consensus Estimate for TTD’s earnings is pegged at 24 cents per share, suggesting an increase of 33.3% from the prior-year quarter’s reported figure.
Tencent Music Entertainment Group (TME - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank of 2 at present.
Tencent Music is scheduled to release third-quarter 2022 results on Nov 15. The Zacks Consensus Estimate for TME’s earnings is pegged at 11 cents per share, suggesting an increase of 22.2% from the prior-year quarter’s reported figure.
Image: Bigstock
eBay (EBAY) to Report Q3 Earnings: What's in the Offing?
eBay (EBAY - Free Report) is scheduled to report third-quarter 2022 results on Nov 2.
For the third quarter, EBAY expects net revenues of $2.29-$2.37 billion. On an FX-neutral basis, the metric is anticipated to decline 5-2% from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for revenues is pegged at $2.32 billion, implying a decline of 7.4% from the year-ago period’s reported figure.
EBAY anticipates non-GAAP earnings per share between 89 cents and 95 cents. The consensus mark for earnings stands at 94 cents per share, which has been unchanged over the past 30 days. The consensus mark improved 4.4% from the year-ago quarter’s reported figure.
EBAY beat on earnings in all of the trailing four quarters, the average surprise being 4.8%.
eBay Inc. Price and EPS Surprise
eBay Inc. price-eps-surprise | eBay Inc. Quote
Factors to Consider
eBay’s third-quarter results are likely to reflect strong performance of the advertising business owing to the growing adoption of new products and increased optimization.
Strength in Promoted Listings is expected to have helped eBay gain momentum among sellers. Also, solid promoted listings momentum might have continued driving eBay’s advertising revenues.
EBAY is gaining traction among small business owners who are leveraging the Marketplace to expand their customer reach. The increasing number of small businesses is expected to have attracted more shoppers to the EBAY platform.
Continuous efforts to strengthen the Authenticity Guarantee service for acquiring loyalty of customers are expected to have driven top-line growth in the to-be-reported quarter.
eBay is consistently adding sellers and expanding categories to its Refurbished program to enhance customer satisfaction. This might have remained another positive.
EBAY is expected to have gained momentum among collectible enthusiasts on the back of its robust tools. This is likely to have benefited its trading card business in the quarter to be reported.
During the third quarter, eBay completed the takeover of the myFitment group of companies to strengthen its parts and accessories category. The acquisition’s impact is likely to be reflected in the upcoming quarterly results.
However, the softness in transactional activities on eBay’s platform is expected to have been a headwind during the quarter to be reported.
Rising competitive pressure from e-commerce giants like Amazon is likely to have continued posing a challenge to eBay’s market position.
Uncertainties related to the coronavirus pandemic, impacts of the Russian-Ukraine war, supply-chain constraints and inflationary pressures are likely to get reflected in the impending quarterly results.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for eBay this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here, as you see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
eBay has an Earnings ESP of -0.71% and a Zacks Rank #3 at present.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Baidu (BIDU - Free Report) has an Earnings ESP of +0.82% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Baidu is set to report third-quarter 2022 results on Nov 16. The Zacks Consensus Estimate for BIDU’s earnings is pegged at $2.44 per share, suggesting an increase of 7.02% from the prior-year period’s reported figure.
The Trade Desk (TTD - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank of 2 at present.
The Trade Desk is scheduled to release third-quarter 2022 results on Nov 9. The Zacks Consensus Estimate for TTD’s earnings is pegged at 24 cents per share, suggesting an increase of 33.3% from the prior-year quarter’s reported figure.
Tencent Music Entertainment Group (TME - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank of 2 at present.
Tencent Music is scheduled to release third-quarter 2022 results on Nov 15. The Zacks Consensus Estimate for TME’s earnings is pegged at 11 cents per share, suggesting an increase of 22.2% from the prior-year quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.