E-commerce and auction companies eBay Co., Ltd. (NASDAQ:EBAY) will report its fourth quarter financial results after the market closes on Tuesday.
Here we introduce earnings forecasts, what analysts are saying, and key items to watch.
Revenue forecast: Analysts expect eBay's fourth-quarter sales to be $2.512 billion, according to data from Benzinga Pro.
Sales are expected to be at the same level as last year's fourth quarter results, with sales expected to be slightly higher than the third quarter's sales of $2.5 billion. The company's sales exceeded analyst estimates for nine consecutive quarters.
Analysts expect eBay to report earnings per share of $1.03 in the fourth quarter, compared with $1.07 in the year-ago period. The company's earnings per share have exceeded analyst expectations for 10 consecutive quarters.
eBay's fourth-quarter guidance, as shared in its third-quarter results, calls for revenue of $2.47 billion to $2.53 billion and earnings per share of $1.00 to $1.05.
Analyst opinion: eBay's fourth-quarter results may exceed expectations, Needham analyst says Anna Andreeva Said.
The analyst gave the company a “hold” rating and did not set a price target, but said it was more likely that earnings per share would exceed expectations than sales for the quarter.
“We model the receipt rate at 13.8%, which is slightly below Q3 2023 levels (holiday demand typically shifts to higher ASP products),” Andreeva said. Stated.
The analyst said eBay's advertising revenue is 2% of gross merchandise sales, with room to grow to the company's $2 billion goal.
Andreeva predicted that eBay would expand its profit margins in 2024.
“Stocks are cheap and likely to be defensive on this tape.”
Andreeva said the stock trades at about 7 times enterprise value/EBITDA and about 10 times expected 2024 earnings.
Here are some other recent analyst ratings for eBay::
BMO Capital market: Starts with a Market Perform rating, price target is $49.
wells fargo: Maintained equal weight rating, lowered price target from $46 to $45
Related Link: eBay Pays $59 Million to Resolve Justice Department Investigation into Alleged Drug Violations in its Marketplace
Main items to note: One of the key items to watch for eBay is costs and profit margins, with recent news that the company will lay off about 1,000 employees, about 9% of its full-time workforce. .
“We recognize that these actions are not something we take lightly and impact all eBayers,” the company said in January.
Analysts and investors will be looking forward to 2024 guidance and what's next for the company. eBay said it is committed to returning approximately 125% of its cumulative free cash flow to shareholders through share buybacks and dividends.
The auction house has announced multiple settlements in recent months, and the company's stance on the pending lawsuits and how the outcome will affect the company's finances could become a hot topic.
EBAY price action: eBay stock is trading at $43.80, while its 52-week trading range is $37.17 to $49.48. eBay stock has fallen 3% over the past year.
Read next: Early bird spots for Tesla Cybertruck go for big on eBay: Would you pay $10,000 to get it ASAP?
Photo: Shutterstock
