eBay Earns 77 Cents per Share

Another earnings beat for us, but this time with better guidance. eBay (EBAY) reported Q1 earnings of 77 cents per share. That topped estimates of 70 cents per share. Quarterly revenue was $4.45 billion, just a hair above Wall Street’s estimate of $4.42 billion.

The details are pretty solid.

eBay Inc.’s commerce and payments ecosystems continued to increase the role they play in global commerce, but the strengthening dollar significantly impacted first quarter results and reduced the 9% organic growth rate to 4%. Revenue growth was negatively impacted by foreign currency translation at eBay and PayPal by 7 pts and 3 pts respectively, with benefits from foreign currency hedging partially offsetting the impact at PayPal. Additionally, weaker local currencies in some markets led to reduced demand for goods in export-oriented markets like North America, impacting the growth of cross border trade.

“We had a strong first quarter, with eBay and PayPal off to a good start for the full year,” said eBay Inc. President and CEO John Donahoe. “I feel very good about the performance of our teams at eBay and PayPal. Each business is executing well with greater focus and operating discipline as we prepare to separate eBay and PayPal into independent publicly traded companies. We are moving forward with clarity and speed, with a smooth separation expected in the third quarter. We are deeply committed to setting up eBay and PayPal to succeed and to deliver sustainable value to our shareholders.”

Now for guidance. eBay estimates earnings of 71 to 73 cents per share for Q1, and revenue between $4.4 and $4.5 billion. The consensus on Wall Street had been for earnings of 71 cents per share on revenue of $4.57 billion.

For all of 2015, eBay sees earnings of $3.05 to $3.15 per share on revenue of $18.35 to $18.85 billion. Wall Street had been expecting $3.10 per share on revenue of $18.96 billion.

The shares are currently up 4.4% in the after-hours market.

Posted by on April 22nd, 2015 at 4:31 pm


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