EBay Earnings: What to Watch
July 20 2017 - 8:29AM
Dow Jones News
By Laura Stevens
EBay Inc. is scheduled to announce its second-quarter earnings
after the market closes on Thursday. Here's what you need to
know:
EARNINGS FORECAST: Analysts polled by Thomson Reuters expect
eBay to earn 45 cents a share, compared with adjusted results of 43
cents a year ago. (The company earned 38 cents a share unadjusted.)
The company forecast adjusted second-quarter earnings of between 43
cents and 45 cents.
REVENUE FORECAST: Revenue of $2.31 billion is forecast by the
analysts, compared with $2.23 billion a year ago. EBay expected
revenue of between $2.28 billion and $2.32 billion.
WHAT TO WATCH:
--STRUCTURED DATA: Investors will be looking for updates to
eBay's all-important structured-data initiative, in which the
company is making its site more searchable in part by grouping
single listings into browsable categories. Executives in the first
quarter said that the initiative was drawing more traffic to those
pages. It's part of the company's broader push to become more
modern and move away from its legacy image as an online garage
sale. And it has helped push up eBay stock prices, up about 24%
year-to-date as of Wednesday's closing.
--ADVERTISING: EBay's "Fill Your Cart with Color" ad campaign
hit the national market in June, analysts note, something that
could help eBay gain some summer momentum. The marketplace has made
a big advertising push over the past year, targeting new customers
via social media and more traditional means like TV. "We continue
to expect a combination of increasing visibility through refreshed
advertising campaigns and gradual improvement to the core eBay
site/app should drive modest acceleration in [gross merchandise
volume] growth through the year," add Baird analysts.
--GUIDANCE: Can eBay's push to modernize keep yielding sales and
profitability growth? "Guidance will be under the microscope once
again for eBay, as each successive quarter in 2017 should show
improving top and bottom line trends," write Barclays analysts.
Over the past few quarters, eBay has largely delivered -- but
analysts will be looking for more.
(END) Dow Jones Newswires
July 20, 2017 08:14 ET (12:14 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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