eBay (Nasdaq: EBAY ) reported earnings on Jan. 16. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), eBay met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share dropped significantly.
Margins contracted across the board.
eBay chalked up revenue of $3.99 billion. The 30 analysts polled by S&P Capital IQ wanted to see revenue of $3.98 billion on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $3.38 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.70. The 32 earnings estimates compiled by S&P Capital IQ predicted $0.69 per share. GAAP EPS of $0.57 for Q4 were 63% lower than the prior-year quarter's $1.52 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 69.4%, 30 basis points worse than the prior-year quarter. Operating margin was 21.9%, 70 basis points worse than the prior-year quarter. Net margin was 18.8%, 3,980 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.80 billion. On the bottom line, the average EPS estimate is $0.63.
Next year's average estimate for revenue is $16.31 billion. The average EPS estimate is $2.75.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 3,775 members out of 4,341 rating the stock outperform, and 566 members rating it underperform. Among 1,259 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,174 give eBay a green thumbs-up, and 85 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on eBay is outperform, with an average price target of $55.44.
Internet software and services are being consumed in radically different ways, on new and increasingly mobile devices. Is eBay on the right side of the revolution? Check out the changing landscape and meet the company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add eBay to My Watchlist.