On Jan. 18, eBay (NASDAQ:EBAY) released Q4 2005 earnings for the period ending Dec. 31, 2005.

  • Record fourth-quarter revenues of $1.3 billion.
  • Free cash flow substantially negative when factoring in acquisitions.
  • Revenues and earnings of $0.20 per share exceeded company guidance, but then, how hard is it to paint a target around an arrow you stuck in the wall yourself?

(Figures in thousands, except per-share data)

Income Statement Highlights

Q4 2005

Q4 2004

% Change

Sales

$1,328,859

$935,782

+42.0%

Net Profit

$279,221

$205,379

+36.0%

EPS

$0.20

$0.15

+33.3%



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2005

Q4 2004

Change

Gross Margin

81.98%

81.15%

+0.83%

Op. Margin

27.87%

30.43%

-2.55%

Net Margin

21.01%

21.95%

-0.94%



Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2005

Q4 2004

% Change

Cash+ ST Invest.

$2,088,230

$2,012,049

+3.8%

Inventory

--

--

N/A

Accounts Rec.

$578,070

$364,280

+58.7%

AR figure includes the line item "funds receivable from customers."

Liabilities

Q4 2005

Q4 2004

% Change

Long-Term Debt

--

--

N/A

Accounts Pay.

$642,343

$369,763

+73.7%

AP figure includes the line item "Funds payable and amounts due to customers."

Cash Flow Highlights

Q4 2005

Q4 2004

% Change

Cash From Ops

$526,237

$381,207

+38.0%

Capital Expend.

$1,711,232

$415,658

+311.7%

Free Cash Flow

$(1,184,995)

$(34,451)

N/A

Capex figure includes acquisitions.

Find out why Fools always follow the money.

Related Companies:

  • Yahoo! (NASDAQ:YHOO)
  • Overstock.com (NASDAQ:OSTK)
  • Google (NASDAQ:GOOG)
  • Wal-Mart (NYSE:WMT)

Related Foolishness:

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication, Seth Jayson had no positions in any company mentioned. eBay is aMotley Fool Stock Advisorrecommendation. Overstock.com is aRule Breakerspick. Fool rules are here.