The 10-second takeaway
For the quarter ended June 30 (Q2), eBay met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew. GAAP earnings per share dropped.
Margins dropped across the board.
eBay logged revenue of $3.88 billion. The 36 analysts polled by S&P Capital IQ anticipated sales of $3.89 billion on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $3.40 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 $0.63. The 36 earnings estimates compiled by S&P Capital IQ forecast $0.63 per share. Non-GAAP EPS of $0.63 for Q2 were 13% higher than the prior-year quarter's $0.56 per share. GAAP EPS of $0.49 for Q2 were 7.5% lower than the prior-year quarter's $0.53 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 68.8%, 220 basis points worse than the prior-year quarter. Operating margin was 19.3%, 120 basis points worse than the prior-year quarter. Net margin was 16.5%, 390 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.97 billion. On the bottom line, the average EPS estimate is $0.65.
Next year's average estimate for revenue is $16.32 billion. The average EPS estimate is $2.75.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 3,896 members out of 4,461 rating the stock outperform, and 565 members rating it underperform. Among 1,303 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,222 give eBay a green thumbs-up, and 81 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 $63.83.
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