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Here's What You Should Know About EBAY Ahead of Q1 Earnings

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eBay (EBAY - Free Report) is scheduled to report its first-quarter 2024 results on May 1.

The company has been benefiting from its expanding product offerings to enhance buyer and seller experience. Its growing focus across advertising, Motors Parts & Accessories, luxury goods and financial services offerings is expected to have continued driving its top-line growth in the to-be-reported quarter.

Continued momentum in its advertising business, owing to strength in its cost-per-click unit and increased demand for its first-party advertising products, is expected to have been a major growth driver of the company during the quarter under review.

Strength in the company’s Authenticity Guarantee program and expanding its product coverage within fine jewelry are likely to have boosted its performance across focus categories during the first quarter.

Increasing focus to enhance its magical listing experience is expected to have driven seller momentum in the to-be-reported quarter.

EBAY’s growing initiatives in Germany, such as introducing a MAP-based browsing experience to offer trending and recently listed items, are expected to have driven its international revenues in the first quarter. Also, the launch of eBay International Shipping is likely to have further boosted the international revenues in the quarter under review.

The Zacks Consensus Estimate for International revenues stands at $1.36 billion, indicating growth of 9% from the year-ago reported figure.

However, softness in consumer discretionary product spending is expected to have negatively impacted the active buyer base in the to-be-reported quarter.

The consensus estimate for active buyers stands at 131.82 million, indicating a decline of 0.9% year over year.

Macroeconomic uncertainties and intensifying competition are likely to have been headwinds for the company.

eBay Inc. Price and EPS Surprise

eBay Inc. Price and EPS Surprise

eBay Inc. price-eps-surprise | eBay Inc. Quote

Guidance & Estimates

For the first quarter of 2024, EBAY expects revenues of $2.50-$2.54 billion. On an FX-neutral basis, the year-over-year change in revenues is anticipated to be 0%-2%. On a spot rate basis, the same is expected to be 0%-1%.

The Zacks Consensus Estimate for revenues is pegged at $2.53 billion, implying growth of 0.8% from the year-ago reported figure.

The company anticipates non-GAAP earnings per share between $1.19 and $1.23, indicating year-over-year growth of 7%-11%.

The consensus mark for earnings is pegged at $1.20 per share, indicating a rise of 8.1% compared with the year-ago quarter’s reported figure.

What Our Model Says

According to the Zacks model, 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.

Etsy has an Earnings ESP of -0.98% and a Zacks Rank #1 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some stocks worth considering, as our model shows that they have the right combination of elements to beat on earnings this season.

APi Group (APG - Free Report) has an Earnings ESP of +2.06% and a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.

APi Group is scheduled to release first-quarter 2024 results on May 2. The Zacks Consensus Estimate for APG’s earnings is pegged at 32 cents per share, indicating growth of 28% from the year-ago quarter’s reported figure.

Arista Networks (ANET - Free Report) has an Earnings ESP of +2.49% and a Zacks Rank #1 at present.

ANET is set to report its first-quarter 2024 results on May 7. The Zacks Consensus Estimate for ANET’s earnings is pegged at $1.74 per share, indicating growth of 21.7% from the year-ago quarter’s reported figure.

Cardinal Health (CAH - Free Report) has an Earnings ESP of +1.11% and a Zacks Rank #3 at present.

CAH is scheduled to release third-quarter fiscal 2024 results on May 2. The Zacks Consensus Estimate for CAH’s earnings is pegged at $1.95 per share, indicating growth of 12.1% from the year-ago quarter’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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