The 10-second takeaway
For the quarter ended Sep. 30 (Q3), eBay met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.
Margins grew across the board.
eBay notched revenue of $3.40 billion. The 33 analysts polled by S&P Capital IQ predicted revenue of $3.41 billion on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $2.97 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 $0.55. The 36 earnings estimates compiled by S&P Capital IQ forecast $0.54 per share. GAAP EPS of $0.45 for Q3 were 22% higher than the prior-year quarter's $0.37 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 70.0%, 100 basis points better than the prior-year quarter. Operating margin was 19.6%, 150 basis points better than the prior-year quarter. Net margin was 17.5%, 100 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.95 billion. On the bottom line, the average EPS estimate is $0.69.
Next year's average estimate for revenue is $14.05 billion. The average EPS estimate is $2.35.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 3,719 members out of 4,283 rating the stock outperform, and 564 members rating it underperform. Among 1,182 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,095 give eBay a green thumbs-up, and 87 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 $51.01.
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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. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend 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.