The 10-second takeaway
For the quarter ended June 30 (Q2), eBay beat slightly on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased significantly.
Gross margins shrank, operating margins dropped, and net margins expanded.
eBay reported revenue of $3.40 billion. The 30 analysts polled by S&P Capital IQ foresaw a top line of $3.36 billion on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $2.76 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 $0.56. The 32 earnings estimates compiled by S&P Capital IQ averaged $0.55 per share. GAAP EPS of $0.53 for Q2 were 141% higher than the prior-year quarter's $0.22 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 71.0%, 100 basis points worse than the prior-year quarter. Operating margin was 20.5%, 40 basis points worse than the prior-year quarter. Net margin was 20.4%, 1,010 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.41 billion. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $14 billion. The average EPS estimate is $2.35.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 3,656 members rating the stock outperform, and 563 members rating it underperform. Among 1,175 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,085 give eBay a green thumbs-up, and 90 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 $44.31.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of eBay. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.