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San Jose-based eBay Inc. (EBAY) is a global e-commerce leader renowned for its robust platform that connects millions of buyers and sellers worldwide. With a market cap of $26.54 billion, eBay offers a diverse range of services, including online marketplace operations, advertising, and payment solutions. The company is scheduled to report its fiscal second-quarter earnings for 2024 on Wednesday, Jul. 24.
Ahead of the event, analysts expect EBAY to report a profit of $0.88 per share, up 20.6% from $0.73 per share in the year-ago quarter. In the last four quarters, the company has missed Wall Street’s bottom-line estimates in three and surpassed on another occasion.
Its adjusted earnings of $1.02 per share for the last reported quarter surpassed the consensus estimate by 5.2%. The company’s strong Q1 2024 performance was driven by significant growth in first-party advertising revenues despite weaknesses in third-party advertising and a slight decline in active buyers.
For fiscal 2024, analysts expect EBAY to report EPS of $3.72, up 18.5% from $3.14 in fiscal 2023. Fiscal 2025 EPS is expected to grow 6.7% year over year to $3.97.
EBAY stock is up 21.2% on a YTD basis, outperforming the broader S&P 500 Index's ($SPX) 16.7% returns and the Nasdaq Internet Invesco ETF’s (PNQI)17.1% returns over the same time frame.
On May 1, eBay Inc. reported its Q1 results, which showed weak revenue growth and lower-than-expected guidance for the current quarter. As a result, the stock dropped 9.5% in the pre-market session following the results release.
The consensus opinion on EBAY stock is optimistic, with an overall “Moderate Buy” rating. Out of 27 analysts covering the stock, nine advise a “Strong Buy” rating, 17 analysts suggest a “Hold,” and one gives a “Strong Sell.”
This configuration is slightly more bullish than three months ago when the stock had seven “Strong Buy” ratings. The average analyst price target for EBAY is $53.70, indicating a potential upside of 1.6% from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
