Stock Story -
Online marketplace eBay (NASDAQ:EBAY) will be reporting earnings tomorrow after the bell. Here's what investors should know.
eBay beat analysts' revenue expectations by 2.2% last quarter, reporting revenues of $2.56 billion, up 2.1% year on year. It was a weak quarter for the company, with slow revenue growth and underwhelming revenue guidance for the next quarter. The company reported 132 million active buyers, down 1.5% year on year.
Is eBay a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting eBay's revenue to be flat year on year at $2.53 billion, in line with the 1.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.20 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. eBay has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 1.6% on average.
Looking at eBay's peers in the consumer internet segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Teladoc (NYSE:TDOC) delivered year-on-year revenue growth of 2.7%, beating analysts' expectations by 1.4%, and Snap (NYSE:SNAP) reported revenues up 20.9%, topping estimates by 6.6%. Teladoc traded down 2.4% following the results while Snap was up 27.5%.
Read the full analysis of Teladoc's and Snap's results on StockStory.
Growth stocks have been quite volatile since the start of 2024, and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share prices down 4.4% on average over the last month. eBay's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $51.1 (compared to the current share price of $52.74).
