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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 2023 results on Feb 27.
For the fourth quarter, the company expects revenues of $2.47-$2.53 billion. On an FX-neutral basis, the year-over-year change in revenues is anticipated to be (1)%-2%. On a spot rate basis, the same is expected to be (2)%-1%.
The Zacks Consensus Estimate for revenues is pegged at $2.51 billion, implying a decline of 0.2% from the year-ago reported figure.
The company anticipates non-GAAP earnings per share between $1.00 and $1.05, indicating a year-over-year decline of 6-2%.
The consensus mark for earnings has moved north by 0.9% to $1.03 per share over the past 30 days. Further, the estimate indicates a fall of 3.7% compared with the year-ago quarter’s reported figure.
The company beat the Zacks Consensus Estimate for earnings in the trailing four quarters, the average being 3.2%.
Let us see how things have shaped up for this announcement.
Solid momentum across EBAY’s first-party advertising products is anticipated to have continued to benefit its financial performance in the fourth quarter.
eBay’s strength across Promoted Listings is expected to have driven its momentum among sellers on the back of data-driven recommendations. It is also likely to have contributed well to the performance of the advertisement business.
The growing adoption of the company’s Managed Payments is expected to have benefited the quarterly performance. eBay’s deepening focus on scaling managed payments globally is likely to have been another tailwind.
The company 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 growing momentum across the new consignment service, which allows users to directly sell luxury items to expert sellers, is anticipated to have contributed well.
eBay introduced a mobile consignment concierge, the Luxe Line, to offer a convenient selling experience. Visitors in Los Angeles and Las Vegas can directly access expert sellers listing and selling luxury items. This is likely to have boosted its seller momentum.
However, softness in eBay’s Marketplace platform and weakening momentum among active buyers are likely to have hurt its gross merchandise volume (GMV) in the quarter under review.
The impacts of rising inflationary pressure are likely to get reflected in the upcoming results.
The Zacks Consensus Estimate for the active buyer base stands at 132 million, suggesting a decline of 1.5% from the year-ago reported figure.
The Zacks Consensus Estimate for GMV is pegged at $18.1 billion, indicating a fall of 0.8% from the prior-year quarter’s reported figure.
What Our Model Says
Our proven model 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.
eBay has an Earnings ESP of +3.35%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
The company carries a Zacks Rank #3 at present.
Other Stocks to Consider
Here are some other companies worth considering from the same space, as our model shows that these also have the right combination of elements to beat on earnings in the soon-to-be-reported quarterly results.
The Gap is set to announce fourth-quarter 2023 results on Mar 7. The Zacks Consensus Estimate for GPS’ earnings is pinned at 19 cents per share, which compares favorably with the year-ago quarter’s loss of 75 cents per share.
American Eagle Outfitters (AEO - Free Report) has an Earnings ESP of +0.87% and a Zacks Rank of 1 at present.
American Eagle Outfitters is set to announce fourth-quarter 2023 results on Mar 7. The Zacks Consensus Estimate for AEO’s earnings is pinned at 50 cents per share, indicating growth of 35.1% from the year-ago quarter’s reported figure.
Constellation Energy Corporation (CEG - Free Report) has an Earnings ESP of +2.05% and a Zacks Rank #2 at present.
Constellation Energy Corporation is scheduled to release fourth-quarter 2023 results on Feb 27. The Zacks Consensus Estimate for CEG’s earnings is pegged at $1.71 per share, suggesting a jump from the prior-year quarter figure of 10 cents per share.
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eBay (EBAY) to Report Q4 Earnings: What's in the Offing?
eBay (EBAY - Free Report) is scheduled to report fourth-quarter 2023 results on Feb 27.
For the fourth quarter, the company expects revenues of $2.47-$2.53 billion. On an FX-neutral basis, the year-over-year change in revenues is anticipated to be (1)%-2%. On a spot rate basis, the same is expected to be (2)%-1%.
The Zacks Consensus Estimate for revenues is pegged at $2.51 billion, implying a decline of 0.2% from the year-ago reported figure.
The company anticipates non-GAAP earnings per share between $1.00 and $1.05, indicating a year-over-year decline of 6-2%.
The consensus mark for earnings has moved north by 0.9% to $1.03 per share over the past 30 days. Further, the estimate indicates a fall of 3.7% compared with the year-ago quarter’s reported figure.
The company beat the Zacks Consensus Estimate for earnings in the trailing four quarters, the average being 3.2%.
Let us 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
Solid momentum across EBAY’s first-party advertising products is anticipated to have continued to benefit its financial performance in the fourth quarter.
eBay’s strength across Promoted Listings is expected to have driven its momentum among sellers on the back of data-driven recommendations. It is also likely to have contributed well to the performance of the advertisement business.
The growing adoption of the company’s Managed Payments is expected to have benefited the quarterly performance. eBay’s deepening focus on scaling managed payments globally is likely to have been another tailwind.
The company 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 growing momentum across the new consignment service, which allows users to directly sell luxury items to expert sellers, is anticipated to have contributed well.
eBay introduced a mobile consignment concierge, the Luxe Line, to offer a convenient selling experience. Visitors in Los Angeles and Las Vegas can directly access expert sellers listing and selling luxury items. This is likely to have boosted its seller momentum.
However, softness in eBay’s Marketplace platform and weakening momentum among active buyers are likely to have hurt its gross merchandise volume (GMV) in the quarter under review.
The impacts of rising inflationary pressure are likely to get reflected in the upcoming results.
The Zacks Consensus Estimate for the active buyer base stands at 132 million, suggesting a decline of 1.5% from the year-ago reported figure.
The Zacks Consensus Estimate for GMV is pegged at $18.1 billion, indicating a fall of 0.8% from the prior-year quarter’s reported figure.
What Our Model Says
Our proven model 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.
eBay has an Earnings ESP of +3.35%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
The company carries a Zacks Rank #3 at present.
Other Stocks to Consider
Here are some other companies worth considering from the same space, as our model shows that these also have the right combination of elements to beat on earnings in the soon-to-be-reported quarterly results.
The Gap (GPS - Free Report) has an Earnings ESP of +24.44% and sports a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Gap is set to announce fourth-quarter 2023 results on Mar 7. The Zacks Consensus Estimate for GPS’ earnings is pinned at 19 cents per share, which compares favorably with the year-ago quarter’s loss of 75 cents per share.
American Eagle Outfitters (AEO - Free Report) has an Earnings ESP of +0.87% and a Zacks Rank of 1 at present.
American Eagle Outfitters is set to announce fourth-quarter 2023 results on Mar 7. The Zacks Consensus Estimate for AEO’s earnings is pinned at 50 cents per share, indicating growth of 35.1% from the year-ago quarter’s reported figure.
Constellation Energy Corporation (CEG - Free Report) has an Earnings ESP of +2.05% and a Zacks Rank #2 at present.
Constellation Energy Corporation is scheduled to release fourth-quarter 2023 results on Feb 27. The Zacks Consensus Estimate for CEG’s earnings is pegged at $1.71 per share, suggesting a jump from the prior-year quarter figure of 10 cents per share.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.