On Oct. 18, eBay (NASDAQ:EBAY) released third-quarter earnings for the period ended Sept. 30.
- Revenues exceeded analyst estimates by 1.36%, but EPS missed those estimates.
- The PayPal and Skype businesses led to 31% growth in revenues.
- EPS increased by $0.02 due to the 10% increase in net profit.
- The operating margin was driven lower by the inclusion of the Skype business.
- Cash flow was reduced by expenses related to data-center and software investments to support capacity expansion.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q3 2006 |
Q3 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$1,429 |
$1,449 |
$1,106 |
31.0% |
|
Net Profit |
-- |
$281 |
$255 |
10.2% |
|
EPS |
$0.24 |
$0.20 |
$0.18 |
11.1% |
|
Diluted Shares |
-- |
1,426 |
1,387 |
2.8% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
78.21% |
81.87% |
(3.66) |
|
Operating Margin |
23.40% |
32.27% |
(8.87) |
|
Net Margin |
19.39% |
23.06% |
(3.67) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$3,224 |
$3,069 |
5.0% |
|
Accounts Rec. |
$367 |
$274 |
33.7% |
|
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$56 |
$43 |
30.3% |
|
Long-Term Debt |
$0 |
$0 |
N/A |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q3 2006 |
Q2 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$522 |
$492 |
6.2% |
|
Capital Expenditures |
$137 |
$70 |
94.2% |
|
Free Cash Flow |
$385 |
$421 |
(8.5%) |
Find out why Fools always follow the money.
Related companies:
- Amazon.com (NASDAQ:AMZN)
- Akamai Technologies (NASDAQ:AKAM)
- Overstock (Nasdaq: OSTK)
Related Foolishness:
- Rick Munarriz comments on Q3 results
- Bidding Up eBay
- eBay Bids on Itself
- Big Advertisers Look to eBay for Help
- The Problem With eBay's "Buy It Now"
Akamai is a Rule Breakers selection . Overstock is a former recommendation of Rule Breakers and Hidden Gems. eBay and Amazon areStock Advisorrecommendations. The Fool has a newsletter for almost every type of investor.
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. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
