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eBay (EBAY) to Report Q4 Earnings: What's in the Offing?
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eBay (EBAY - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 23.
For the fourth quarter, the company expects net revenues of $2.57-$2.62 billion. On an FX-neutral basis, year-over-year growth in revenues is anticipated to be 3-5%. The Zacks Consensus Estimate for revenues is pegged at $2.61 billion, implying a decline of 8.95% from the year-ago reported figure.
Further, EBAY anticipates non-GAAP earnings per share between 97 cents and $1.01. The consensus mark for earnings has been unchanged at 99 cents per share over the past 30 days. This indicates growth of 15.1% from the year-ago reported figure.
EBAY beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters while matching the same once, with an average surprise of 1.7%.
eBay’s fourth-quarter results are likely to reflect gains from strong momentum across the Marketplace platform.
Further, growing marketing initiatives might have aided the fourth-quarter performance of the Marketplace platform.
The company has been gaining traction among small business owners who are leveraging the Marketplace to expand their reach to customers. This is expected to have remained a positive in the fourth quarter.
Also, the increasing number of small businesses is expected to have attracted more customers to the platform. This is likely to have aided growth in the active buyer base in the quarter under review.
The growing adoption of EBAY’s Managed Payments might have continued benefiting the to-be-reported quarter’s performance. Also, deepening focus to scale managed payments worldwide is likely to have been a tailwind.
Further, strength across Promoted Listings is expected to have helped eBay gain momentum across sellers in the fourth quarter. Also, solid promoted listings momentum is likely to have continued driving the company’s advertising revenues.
In addition, EBAY has been witnessing growth in sneaker and smartwatch businesses in the United States. This is likely to have contributed well to top-line growth in the quarter under discussion.
During the quarter, the company acquired Sneaker Con’s authentication business named Sneaker Con Digital to strengthen the Authenticity Guarantee service. This might get reflected in the upcoming quarterly results.
In addition to these, eBay is expected to have gained momentum among trading card enthusiasts on the back of Price Guide and Collection tools. This is likely to have benefited the company’s performance in the quarter under review.
Yet, rising competitive pressure from e-commerce giants like Amazon is likely to have continued posing challenges to eBay’s market position.
Further, impacts of the global supply chain disruptions are expected to get reflected in its fourth-quarter results.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for eBay this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
eBay has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
Stocks to Consider
Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.
DICK’s is scheduled to release fourth-quarter fiscal 2022 results on Mar 8. The Zacks Consensus Estimate for DKS’ earnings is pegged at $3.39 per share, suggesting an increase of 39.5% from the prior-year reported figure.
Ambarella (AMBA - Free Report) has an Earnings ESP of +2.86% and a Zacks Rank #3 at present.
Ambarella is set to report fourth-quarter fiscal 2022 results on Feb 28. The Zacks Consensus Estimate for AMBA’s earnings is pegged at 43 cents per share, which suggests an increase of 207.1% from the prior-year reported figure.
Casey’s General Stores (CASY - Free Report) has an Earnings ESP of +15.39% and a Zacks Rank #3 at present.
Casey’s is scheduled to release third-quarter fiscal 2022 results on Mar 8. The Zacks Consensus Estimate for CASY’s earnings is pegged at $1.43 per share, which suggests an increase of 37.5% from the prior-year reported figure.
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eBay (EBAY) to Report Q4 Earnings: What's in the Offing?
eBay (EBAY - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 23.
For the fourth quarter, the company expects net revenues of $2.57-$2.62 billion. On an FX-neutral basis, year-over-year growth in revenues is anticipated to be 3-5%. The Zacks Consensus Estimate for revenues is pegged at $2.61 billion, implying a decline of 8.95% from the year-ago reported figure.
Further, EBAY anticipates non-GAAP earnings per share between 97 cents and $1.01. The consensus mark for earnings has been unchanged at 99 cents per share over the past 30 days. This indicates growth of 15.1% from the year-ago reported figure.
EBAY beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters while matching the same once, with an average surprise of 1.7%.
eBay Inc. Price and EPS Surprise
eBay Inc. price-eps-surprise | eBay Inc. Quote
Factors to Consider
eBay’s fourth-quarter results are likely to reflect gains from strong momentum across the Marketplace platform.
Further, growing marketing initiatives might have aided the fourth-quarter performance of the Marketplace platform.
The company has been gaining traction among small business owners who are leveraging the Marketplace to expand their reach to customers. This is expected to have remained a positive in the fourth quarter.
Also, the increasing number of small businesses is expected to have attracted more customers to the platform. This is likely to have aided growth in the active buyer base in the quarter under review.
The growing adoption of EBAY’s Managed Payments might have continued benefiting the to-be-reported quarter’s performance. Also, deepening focus to scale managed payments worldwide is likely to have been a tailwind.
Further, strength across Promoted Listings is expected to have helped eBay gain momentum across sellers in the fourth quarter. Also, solid promoted listings momentum is likely to have continued driving the company’s advertising revenues.
In addition, EBAY has been witnessing growth in sneaker and smartwatch businesses in the United States. This is likely to have contributed well to top-line growth in the quarter under discussion.
During the quarter, the company acquired Sneaker Con’s authentication business named Sneaker Con Digital to strengthen the Authenticity Guarantee service. This might get reflected in the upcoming quarterly results.
In addition to these, eBay is expected to have gained momentum among trading card enthusiasts on the back of Price Guide and Collection tools. This is likely to have benefited the company’s performance in the quarter under review.
Yet, rising competitive pressure from e-commerce giants like Amazon is likely to have continued posing challenges to eBay’s market position.
Further, impacts of the global supply chain disruptions are expected to get reflected in its fourth-quarter results.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for eBay this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
eBay has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
Stocks to Consider
Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.
DICK’S Sporting Goods (DKS - Free Report) has an Earnings ESP of +4.86% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
DICK’s is scheduled to release fourth-quarter fiscal 2022 results on Mar 8. The Zacks Consensus Estimate for DKS’ earnings is pegged at $3.39 per share, suggesting an increase of 39.5% from the prior-year reported figure.
Ambarella (AMBA - Free Report) has an Earnings ESP of +2.86% and a Zacks Rank #3 at present.
Ambarella is set to report fourth-quarter fiscal 2022 results on Feb 28. The Zacks Consensus Estimate for AMBA’s earnings is pegged at 43 cents per share, which suggests an increase of 207.1% from the prior-year reported figure.
Casey’s General Stores (CASY - Free Report) has an Earnings ESP of +15.39% and a Zacks Rank #3 at present.
Casey’s is scheduled to release third-quarter fiscal 2022 results on Mar 8. The Zacks Consensus Estimate for CASY’s earnings is pegged at $1.43 per share, which suggests an increase of 37.5% from the prior-year reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.