Shares of eBay Inc. (EBAY) - Get Report were down slightly in premarket trading on Wednesday after the online retail seller said it anticipates strong first-quarter results -- and also received a stock price target upgrade from JPMorgan.
EBay shares were down 0.4% in premarket trading on the Nasdaq Stock Exchange, dipping to $33.55 after ending Tuesday at $33.69.
On Wednesday morning, analysts at JPMorgan raised their 12-month price target to $36 from $33. That followed the company's announcement on Tuesday that first quarter earnings excluding some items will be 62 cents to 64 cents a share, above analysts' estimate of 61 cents. Fourth-quarter adjusted earnings were 71 cents a share, also above estimates.
The company guided for revenue between $2.55 billion to $2.6 billion in the first quarter and $10.7 billion to $10.9 billion for 2019, eBay said. Analysts had been predicting $2.66 billion and $11.2 billion, respectively.
In addition to earnings and guidance, eBay management also announced a "capital structure evolution" that includes a new dividend of 14 cents a share to be paid out beginning in March 2019, and said it expects to return approximately $7 billion to shareholders by way of dividends and stock repurchases over the next two years.
EBay's stock is up 18% since the beginning of this year.