eBay Stock Advancing After Q2 Earnings Beat

eBay reported better than expected quarterly earnings after the close on Wednesday.
By Annie Palmer ,

NEW YORK (TheStreet) -- Shares of eBay (EBAY) - Get Report are rising by 10.37% to $29.79 in early morning trading on Thursday, after the e-commerce giant reported better-than-expected fiscal 2016 second quarter earnings and revenue after yesterday's closing bell.

The company posted adjusted earnings of 43 cents per share on revenue of $2.23 billion, beating analysts expectations of 42 cents per share on revenue of $2.17 billion.

Last year, eBay posted 42 cents per share on revenue of $4.38 billion for the second quarter. 

Additionally, Deutsche Bank increased its price target for the company to $30 from $28 on Thursday. The firm maintained its "hold" rating on the stock, citing stronger growth rates, higher margins and share repurchasing as positive factors. 

Despite revenue growth improving only in the single digits, Deutsche noted that the company's second quarter results were largely positive. Total gross merchandise volume was up for the company, as well as for its subsidiary Stubhub, aided by events such as the NBA Finals, Hamilton and Copa America, the firm said.

"eBay continues to make steady progress on improving conversion rate, the most powerful trend any transactional company can experience," Deutsche Bank added in an analyst note.

For the third quarter, the company expects to post earnings ranging from 42 cents and 44 cents per share on revenues between $2.16 billion and $2.19 billion.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate EBAY INC as a Hold with a ratings score of C. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share and revenue growth. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and generally higher debt management risk.

You can view the full analysis from the report here: EBAY

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