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eBay (EBAY) to Report Q4 Earnings: What's in the Offing?

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eBay (EBAY - Free Report) is scheduled to report fourth-quarter 2022 results on Feb 22.

For the fourth quarter, the company expects net revenues of $2.42-$2.50 billion. On an FX-neutral basis, the year-over-year decline in revenues is anticipated to be 4-1%.

The Zacks Consensus Estimate for revenues is pegged at $2.46 billion, implying a decline of 5.9% from the year-ago reported figure.

The company anticipates non-GAAP earnings per share between $1.03 and $1.09.

The consensus mark for earnings has been unchanged at $1.05 per share over the past 30 days. This indicates flatness when compared with the year-ago quarter’s reported figure.

The company beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being 6.38%.

Let’s see how things have shaped up for this announcement.

eBay Inc. Price and EPS Surprise

 

eBay Inc. Price and EPS Surprise

eBay Inc. price-eps-surprise | eBay Inc. Quote

Key Factors to Note

eBay’s strength across Promoted Listings is expected to have continued to aid its momentum among sellers on the back of data-driven recommendations in the fourth quarter.

It is likely to have contributed well to the performance of the company’s advertisement business. The momentum across EBAY’s first-party advertising products is expected to have continued to benefit the business in the to-be-reported quarter.

The growing adoption of the company’s Managed Payments is expected to have continued to benefit it in the quarter to be reported. eBay’s deepening focus on scaling managed payments globally is likely to have been another tailwind.

EBAY is expected to have continued to gain 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.

The acquisition of TCGplayer, a marketplace for collectible card game enthusiasts, is expected to have benefited the business further.

The acquisition of the myFitment group of companies is expected to have helped EBAY gain momentum among vehicle and motorsport sellers and buyers in the to-be-reported quarter.

Strong momentum in the holiday shopping season is expected to have benefited the company’s Marketplace platform.

The growing efforts toward the implementation of Artificial Intelligence through personalization, image search technology and customer support are expected to have enhanced the Marketplace platform.

However, the softness in transactional activities on eBay’s platform is expected to have been a headwind in the quarter to be reported.

Uncertainties related to the coronavirus pandemic and inflationary pressures are likely to get reflected in the impending quarterly results.

What Our Model Says

Our proven model conclusively predicts 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. 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 +1.52% and a Zacks Rank #3 at present.

Other Stocks to Consider

Here are some other stocks that you may consider, as our model shows that these also have the right combination of elements to beat on earnings this season.

Grid Dynamics (GDYN - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Grid Dynamics is scheduled to release its fourth-quarter 2022 results on Feb 23. The Zacks Consensus Estimate for GDYN’s earnings is pegged at 11 cents per share, suggesting an increase of 10% from the prior-year quarter’s reported figure.

Adobe (ADBE - Free Report) has an Earnings ESP of +0.42% and a Zacks Rank #3 at present.

Adobe is set to report its first-quarter fiscal 2023 results on March 15. The Zacks Consensus Estimate for ADBE’s earnings is pegged at $3.66 per share, suggesting an increase of 8.6% from the prior-year period’s reported figure.

Etsy (ETSY - Free Report) has an Earnings ESP of +7.61% and a Zacks Rank #3 at present.

Etsy is scheduled to release its fourth-quarter 2022 results on Feb 22. The Zacks Consensus Estimate for ETSY’s earnings is pegged at 82 cents per share.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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