What to Expect When eBay Posts Q2 Results
Bloomberg News
NEW YORK (TheStreet) -- Shares of eBay (EBAY) - Get Report are advancing 0.47% to $26.47 on Monday afternoon ahead of the company's 2016 fiscal second quarter earnings, due out after Wednesday's market close.
The company is expected to report a year-over-year decline in earnings per share and revenue.
Analysts surveyed by Thomson Reuters are anticipating earnings of 42 cents per share on revenue of $2.174 billion for the second quarter. A year ago the company reported earnings of 76 cents per share on revenue of $4.4 billion for the same quarter.
Last year's second-quarter results didn't reflect the spinoff of PayPal (PYPL) from eBay, which occurred in July 2015.
"We expect [2016 second-quarter] results to come in line with muted Street expectations, given the declining auction business, reduced search traffic as the company transitions to structured data, and FX headwinds, all of which look likely to weigh down marketplace's growth," Cantor Fitzgerald said in an analyst note on eBay this morning.
The San Jose-based company is an e-commerce site.
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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