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EBAY Gears Up to Report Q3 Earnings: What's in the Offing?
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eBay (EBAY - Free Report) is scheduled to report third-quarter 2023 results on Nov 7.
For the third quarter, the company expects net revenues between $2.46 and $2.52 billion. On an FX-neutral basis, the year-over-year growth in revenues is anticipated to be 2-4%. On a spot rate basis, the same is expected between 3% and 6%.
The Zacks Consensus Estimate for revenues is pegged at $2.5 billion, implying growth of 5.01% from the year-ago reported figure.
The company anticipates non-GAAP earnings between 96 cents and $1.01 per share.
The consensus mark for earnings has remained unchanged at $1.00 per share over the past 30 days. Further, the estimate 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 4.31%.
Let’s see how things have shaped up for this announcement.
eBay’s strength across Promoted Listings is expected to have continued to aid sellers in driving greater velocity and price realization for their inventory.
Further, the company’s continued optimization of promoted listings standards and the expansion of its emerging products, like advanced and externally promoted listings, is likely to have been another positive.
All these factors are likely to have contributed well to the performance of the company’s advertisement business.
Moreover, its investments across new search capabilities, technologies like deep learning and scalable solutions are likely to have aided its performance in the to-be-reported quarter.
Additionally, eBay’s advantages in cross-border trade, owing to its demand and supply density across major trade corridors, are expected to have benefited Gross Merchandise Volume (GMV) in the upcoming results.
The Zacks Consensus Estimate for third-quarter 2023 GMV is pegged at $17.84 billion, indicating growth of 0.72% on a year-over-year basis.
Also, eBay’s strength in its payments infrastructure, allowing it to introduce new payment options and seller financing partnerships, is likely to have boosted its performance in the to-be-reported quarter.
The company’s growing momentum in Magical listings, driven by its strengthening generative AI capabilities, is likely to have driven the quarterly results.
Moreover, strength in motors and parts and accessories end-markets is likely to have contributed well.
However, softness in eBay’s Marketplace platform and weakening momentum among active buyers are likely to have hurt its quarterly results.
Further, growing inflationary pressure is expected to have acted as a headwind in the third quarter.
The Zacks Consensus Estimate for the active buyer base stands at 131.87 million, indicating a decline of 2.3% from the year-ago reported figure.
What Our Model Says
Per the Zacks model, 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.
eBay currently has an Earnings ESP of -0.23% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming release:
Image: Bigstock
EBAY Gears Up to Report Q3 Earnings: What's in the Offing?
eBay (EBAY - Free Report) is scheduled to report third-quarter 2023 results on Nov 7.
For the third quarter, the company expects net revenues between $2.46 and $2.52 billion. On an FX-neutral basis, the year-over-year growth in revenues is anticipated to be 2-4%. On a spot rate basis, the same is expected between 3% and 6%.
The Zacks Consensus Estimate for revenues is pegged at $2.5 billion, implying growth of 5.01% from the year-ago reported figure.
The company anticipates non-GAAP earnings between 96 cents and $1.01 per share.
The consensus mark for earnings has remained unchanged at $1.00 per share over the past 30 days. Further, the estimate 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 4.31%.
Let’s see how things have shaped up for this announcement.
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 sellers in driving greater velocity and price realization for their inventory.
Further, the company’s continued optimization of promoted listings standards and the expansion of its emerging products, like advanced and externally promoted listings, is likely to have been another positive.
All these factors are likely to have contributed well to the performance of the company’s advertisement business.
Moreover, its investments across new search capabilities, technologies like deep learning and scalable solutions are likely to have aided its performance in the to-be-reported quarter.
Additionally, eBay’s advantages in cross-border trade, owing to its demand and supply density across major trade corridors, are expected to have benefited Gross Merchandise Volume (GMV) in the upcoming results.
The Zacks Consensus Estimate for third-quarter 2023 GMV is pegged at $17.84 billion, indicating growth of 0.72% on a year-over-year basis.
Also, eBay’s strength in its payments infrastructure, allowing it to introduce new payment options and seller financing partnerships, is likely to have boosted its performance in the to-be-reported quarter.
The company’s growing momentum in Magical listings, driven by its strengthening generative AI capabilities, is likely to have driven the quarterly results.
Moreover, strength in motors and parts and accessories end-markets is likely to have contributed well.
However, softness in eBay’s Marketplace platform and weakening momentum among active buyers are likely to have hurt its quarterly results.
Further, growing inflationary pressure is expected to have acted as a headwind in the third quarter.
The Zacks Consensus Estimate for the active buyer base stands at 131.87 million, indicating a decline of 2.3% from the year-ago reported figure.
What Our Model Says
Per the Zacks model, 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.
eBay currently has an Earnings ESP of -0.23% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming release:
NetEase (NTES - Free Report) has an Earnings ESP of +5.13% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
NetEase is set to announce third-quarter 2023 results on Nov 16. NTES shares have gained 53% year to date.
Upstart (UPST - Free Report) has an Earnings ESP of +9.09% and a Zacks Rank #1.
Upstart is set to announce third-quarter 2023 results on Nov 7. UPST shares have gained 124.4% year to date.
Clarivate (CLVT - Free Report) has an Earnings ESP of +5.56% and a Zacks Rank #3.
Clarivate is set to announce third-quarter 2023 results on Nov 7. CLVT shares have declined 18.8% year to date.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.